Sasha Singh
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Gold : Long Term Trend Continues to be Downtrend, Might Decline Below 1180

XAUUSD : 4 Hour Chart

Gold again trying to break above the previous resistance at 1244.24 as investors remain cautious today weakening the US dollar and regaining the demand for safe haven. Delay in interest rate increase is definitely going to boost the demand for safe haven and investors now seems like speculating the expected global economic growth and its effect on the US economy. On the 4 hour chart, Gold seems like following a rising wedge pattern and currently trying to surge above the resistance at 1244.24 which earlier also resisted the commodity in rising further. It might break above this resistance level but the rising wedge pattern will not let the commodity post gains forever. Once the commodity reaches the apex of the wedge, it might decline breaking below the rising support trend line.

XAUUSD : Daily Chart

On the daily chart, we can see that there is a falling resistance trend line which will resist the commodity in rising further. The immediate 50 day SMA might also resist the pair in rising further. If it is able to hold gains above this level the next resistance level before the falling resistance trend line is at 1258.67.

XAUUSD : Weekly Chart

On the weekly chart, we can see that the long term trend continues to be downtrend as it is following a descending triangle trend and according to which it should decline below the key support at 1186.02. The moving average pattern is also such that they are signaling a downtrend continuation.