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XAUUSD : Extending Losses as Demand for Dollar Weighs

XAUUSD : Daily Chart

Gold again declined today trimming its gains as the market turned its attention towards US Dollar and dampened the demand for safe haven. On the daily chart, Gold still remains above the falling support trend line of the falling channel or above the key support at 1264.87. It may again rise from this support level as the geopolitical tensions between Ukraine and Russia will continue support the safe haven. Investors seems like waiting for the ISM Manufacturing PMI and grabbing gains ahead of the release and speculating that the Fed is going to increase the interest rates sooner than expected as the US economy shows the sign of recovery.

XAUUSD : 4 Hour Chart

On the 4 hour chart, we can see that the commodity was consolidating within the symmetrical triangle trend and confirmed the bearish trend by breaking the support trend line of the triangle. It has also broken below the 50 day SMA. So as we saw on the daily chart, the next nearest support it may find will be at 

XAUUSD : Daily Chart

However in contrast to falling channel there also seems a falling wedge pattern on the chart, which gives a bullish signal and according to which the commodity should break above the falling resistance trend line of the wedge. So for now Gold may continue to decline until it find support from the falling support trend line of the wedge . Let’s see whether the falling channel pattern or the falling wedge pattern weigh on the chart.