Gold is consolidating above the $1,325 short-term support area in a triangle pattern. The price remains inside the medium-term bullish channel but a final downward move towards $1,310 cannot be ruled out before a bigger bounce higher towards at least $1,350.
Gold has been moving sideways for the last few sessions between $1,320 and $1,350. The trading range has become tighter. The upper triangle boundary is at $1,334 and the lower boundary, at $1,324. The price remains below the 4-hour Kumo (cloud), and this increases the chances of a downward break of the triangle.
The upward moving red channel remains intact and the price stays above the daily Kumo (cloud). There are several bearish divergence signs by the oscillators that increase the chances of a bounce but with a lower high and then a deeper correction lower below $1,300. Gold is in a corrective phase. The price could even move below $1,250 over the coming months before resuming its upward trend.
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