- June 3, 2020
- Posted by: Analysis Team
- Category: Forex News
- Gold stays mildly offered after stepping back from $1,745.
- An ascending trend line from April 21 is on the bears’ radars.
- May 20 high holds the key to the further upside toward the previous month’s top.
Gold prices soften to $1,725.40, down 0.13% on a day, while heading into the European session on Wednesday.
Considering the bullion’s moderate pullback since the week’s start, a potential rounding top bearish formation appears on the 4-hour chart.
As a result, the precious metal weighs down towards a six-week-old upward sloping trend line, currently near $1,700. Though, $1,711 might offer an intermediate halt during the fall.
In a case where the metal prices drop below $1,700, the previous month low near $1,670 could lure the bears.
On the upside, a clear break above $1,745 could propel the safe-haven asset towards May 20 high near $1,754 whereas the May month top close to $1,764.90 could keep the buyers engaged afterward.
Gold four-hour chart
Trend: Further weakness expected