The recent declines in gold prices are set for a pause. Price is stabilizing above the 1274 handle. Ahead of a busy week that includes central bank meetings and the US advance GDP reports, gold investors are likely to wait and watch for data. For now, the risk sentiment remains somewhat mixed. But we will get a better idea as the markets open following a long Easter weekend.
XAUUSD Forming an Inverse Head and Shoulder Pattern
XAUUSD has been consolidating above the previous lows at 1275. In the process, an inverse head and shoulders is forming with the neckline resistance at 1279.25. With the right shoulder forming, we expect a breakout above the neckline resistance. An expected move to the upside will see gold prices targeting the 1285 level.
