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Will Gold Continue to Decline or Reverse the Downtrend?

XAUUSD : 4 Hour Chart

Gold rose on Friday breaking the falling resistance trend line on the 4 hour chart amid the tensions in Ukraine again had investor’s attention. Gold was earlier declining in response to a series of upbeat US data. Now the commodity is trading within a range of 1309.23 which was earlier acting as resistance and 1303.34 which was earlier acting as support. Breaking below the support of 1303.34 will give a bearish continuation however breaking above the resistance of 1309.23 will signal a bearish reversal. According to the simple moving averages on the chart, the pair might continue to decline as the 50 day SMA seems like acting as resistance for the pair and also it has crossed below the 200 day SMA signaling a continuation of downtrend.

XAUUSD : Daily Chart

Now if looking at the daily chart, the commodity still seems to be consolidating within a descending triangle. The simple moving averages are not signaling any breakout or breakdown and showing sideways movement. However the descending triangle pattern is giving a bearish signal and we might see some more losses on the chart.