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Within gold’s current consolidative phase, a prior 1660-1670 support confluence has held well to deliver the consequence of a plausible near-term bullish double bottom pattern. XAU/USD has traded a 38.2% Fibonacci retracement of 1046 (December 2015 lows) – 2075 (August 2020 highs) at 1682 – this drains selling momentum, Benjamin Wong, Strategist at DBS Bank, briefs.

See –  Gold Price Analysis: XAU/USD to move downward as market focuses on higher yields –  OCBC

Gold is in a consolidation phase  

“Gold has developed a minor double bottom and if the pattern delivers, there remains a nudge higher. What’s more, 1671, which is the monthly Ichimoku chart’s kijun support is the level to make or break as gold continues to find its stability pulse.”

“Despite gold having marched higher from its recent 1677 lows, gold remains under the cosh as it stays under the price cloud (the default setting that gold retains the bearish trait of the decline from 2075 highs). That indicates technically gold maintains an underlying bearish trait that was unleashed last September on a crossover sell signal on a 1959 breakdown.”

“In trading down to the recent 1677 lows, gold has retraced 38.2% (1682); by all means one cannot totally remove the threat to eclipse a 50% Fibonacci retracement that calibrates at 1561. For the latter, we would need a forceful move under the current pivot of 1671 and the next support pivot at 1615.”