Gold Price Action Overview Were currently discussing the price behaviour of Gold and its analysis. The
current downtrend of Gold (XAUUSD) aligns with the downward breakout from the triangle. We have
horizontal support at $4120 per ounce, with todays low touching $4120 per ounce. The
proximity of the horizontal support and the lower border of the descending channel is evident. On the 4-hour chart, a
bullish reversal pin bar has formed, which awaits confirmation for a potential bullish correction. While were focusing on the
buyers platform at $4120 per ounce, the rationale behind setting profits at $4112 per ounce needs more clarity as no corresponding level is evident on the chart.
In the gold market, the
bears breached the "Equilateral Triangle" support line on the daily chart at the 4120 mark, testing support at 4120 amid positive US economic data. The
latest price correlation between Gold and the US dollar index stays, and the
insufficient bullish response prompts the sellers to target the range of the figure. The
goal is to test the bullish trend line at the 4120 mark (50% Fibonacci grid level). Within the framework of the
bullish channel on the weekly chart, buying could be likely from these levels. However, considering the
historical sideways movement between the 4120 and 4120 figures over the past four years, a potential decline towards the 4120 figure cannot be possible.
Confirmation of a further decline requires a breakout of the 4120 support, following a bullish pullback and the consolidation of the pair below 4120, validated by closing at least a 4-hour candle.
