Is that a Head and Shoulders pattern forming on the 4-hour chart of Gold (XAU/USD)?
Or is the longer-term uptrend poised to continue?
Check out these key inflection points I'm keeping an eye on!
Gold (XAU/USD): 4-hour
Safe-haven rallies ahead of the U.S. elections appear to be unwinding, as investors grow more optimistic about the economic outlook under President-elect Trump’s administration. With stock traders pricing in business-friendly policies and markets reacting positively to the selection of Treasury Secretary Scott Bessent, who is expected to prevent a full-blown global trade war, the question arises: Has gold’s uptrend come to an end?
Market sentiment and price volatility are typically driven by fundamentals, so it's crucial to stay updated on the economic calendar and daily news. Gold seems to be forming a potential head and shoulders pattern on the 4-hour chart, with a recent dip taking XAU/USD down to the neckline around $2,650.
A break below the support zone at S1 ($2,614.84) could trigger a downtrend, with bearish targets at S2 ($2,517.35) and S3 ($2,467.57). However, if the floor holds, look for a bounce back to the pivot point at $2,666.62 or a rise to the highs near R1 ($2,766.11).
As always, keep an eye on key market catalysts and use proper position sizing in any trades!
