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Gold Confirms Bearish Trend Breaking Down From the Triangle Trend

XAUUSD : Daily Chart

Gold today confirmed the bearish trend by breaking down from the symmetrical triangle trend on the daily chart. The commodity found resistance from the previous support at 1250.35 and continued to decline. Currently it is testing support at 1235.11 however if it continues to decline the next nearest support it should test at 1222.91 or 1207.67. The losses came after the demand for US dollar strengthened after the release of upbeat inflation report and investors wait for the unemployment claims data for some guidance on the economic growth. The breakdown shows that the bearish trend remain intact on the commodity and will not reverse until it breaks above the falling resistance trend line on the chart.

XAUUSD : Hourly Chart

On the hourly chart, we can see that the commodity is declining towards the support at 1231.66 and might find support for now depending on the US unemployment claims data ( releasing at 8:30 AM EDT ) as well. If the data meets the economist’s expectation, gold will be extending losses today and if not, it might find support and rise. However the gains will be limited as there seems a falling resistance trend line which will prevent the commodity in rising further.