Sasha Singh
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Gold Steady Within the Consolidation Range, Will it Break Down or Continue to Consolidate?

XAUUSD : Hourly Chart

Gold seems like following a beautiful descending triangle pattern on the hourly chart signaling that the commodity is going to break down below the key support of the triangle at 1237.19. However on the contrary, moving averages pattern on the chart is signaling that it should continue to follow uptrend and thus might breakout from the falling resistance trend line reversing the downtrend to uptrend. If it breaks down the next nearest support it may find near 1233.98 and if it breaks out it may find the next resistance near 1241.61. Gold seems to be fluctuating on US data as investors continue to bet on the timing of interest rate increase.

XAUUSD : Daily Chart

On the daily chart, the commodity is testing the key resistance at 1241.24 which earlier was acting as support. If it tries to surge above this resistance, the 50 day SMA might try to resist the commodity in rising further. However even if it is able to hold gains above 50 day SMA, there is another resistance trend line. Gold currently seems a little unpredictable so even the strong US data might not be able to pressurize the commodity in declining below the rising support trend line. Let's keep an eye on the Consumer Sentiment data and see what is the reaction of Gold today,Whether it will confirm the downtrend again by breaking below the rising support trend line or it will continue to consolidate?