Following a three-day uptrend, the gold price (XAU/USD) struggles to extend week-start recovery moves, making rounds to $1,875 during Thursday's Asian session. The lack of buying interest in gold could be attributed to hawkish Federal Reserve (Fed) comments, as well as statements from US diplomats highlighting inflation fears. However, the easing of US-China ties and a light calendar test the XAU/USD bears, while technical analysis teases the Gold sellers.
Technical analysis of the gold price
The gold price (XAU/USD) remains within the weekly ascending trend channel, while the hourly chart displays a "Bear flag" bearish chart pattern. The bearish bias on the XAU/USD is bolstered by negative signals from the Moving Average Convergence and Divergence (MACD) indicator, as well as the steady Relative Strength Index (RSI) line at 14. However, a downside break of $1,870 appears to be required for Gold sellers' conviction, while the weekly bottom around $1,860 can act as an additional filter to the south. Following that, the XAU/USD bear focuses on the theoretical target of the stated "Bear flag," which is around $1,780.