The price of gold is currently consolidating below the 23.6 per cent Fibonacci retracement level at 1858.07, in anticipation of future price depreciation.
These expectations are substantiated by the fact that the consolidation is taking the form of a Bearish Triangle, which is typically taken to represent a downtrend continuation pattern.
In other words, once the price action breaks down below the lower boundary of the triangle decisively, this would allow for the continuation of the broader downtrend. Notice that the lower limit of the structure is converging with the 23.6 per cent Fibonacci, which would make such a breakdown even more prominent.
The price action is also concentrated below the 20-day MA (in red) and the 50-day MA (in green), which is yet another attestation of the prevailing bearish bias. Meanwhile, the MACD indicator manifests waning bullish momentum.
Today's summit is likely to strengthen this bearish pressure as global tensions subside, thereby driving the price of the commodity lower.
These expectations are substantiated by the fact that the consolidation is taking the form of a Bearish Triangle, which is typically taken to represent a downtrend continuation pattern.
In other words, once the price action breaks down below the lower boundary of the triangle decisively, this would allow for the continuation of the broader downtrend. Notice that the lower limit of the structure is converging with the 23.6 per cent Fibonacci, which would make such a breakdown even more prominent.
The price action is also concentrated below the 20-day MA (in red) and the 50-day MA (in green), which is yet another attestation of the prevailing bearish bias. Meanwhile, the MACD indicator manifests waning bullish momentum.
Today's summit is likely to strengthen this bearish pressure as global tensions subside, thereby driving the price of the commodity lower.
