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Gold : Fades Away the Possibility of Revival

XAUUSD : Daily Chart

Gold breaks down below the falling wedge pattern on the daily chart, therefore fading away the expectations that the commodity might revive in near future. Now the next nearest support seems to be near 1241.22 and breaking below this support level will open the doors for the next support level at 1216.82. Gold is giving a bearish signal amid the expectations that US economy is growing in line with the economist's expectations and Fed is going to increase the interest rates soon. Also geopolitical risk which earlier provided support to the safe haven now fading away.

Also the 50 day SMA is contracting towards the 100 day and 200 day SMA and might cross below them signaling a downtrend continuation. There is no important economic data for US releasing today so no change is expected in Gold chart and the commodity should continue to decline for a while.