The precious metal was trading near the highs, but price action is rather subdued. This reflects the general perception among investors who remain cautious. Meanwhile, equity markets have been steadily rising. This reflects that confidence among investors is slowly returning.
XAU/USD Consolidates into a Bullish Pennant Pattern
The precious metal is consolidating into a bullish pennant pattern. This pattern is evident, as seen on the 4-hour chart time frame. The pattern potentially raises the upside bias in gold. However, gold prices will need to clear the 1531.63 highs that are in place. The bullish pennant will be validated only after a breakout above this level. In the meantime, to the downside, the support at 1485.71 could hold the declines.
