The XAU/USD quotes continue to move within a downtrend, forming a reversal pattern known as a “wedge.” At the time of this forecast, the price of Gold stands at $1951 per Troy ounce. The moving averages indicate the presence of a short-term bearish trend. Prices have broken below the area between the signal lines, indicating selling pressure from asset sellers and the potential continuation of the price decline from current levels. Currently, we should expect an attempt to further decrease and test the support level near the 1935 area. From there, a rebound upwards and a continuation of the Gold price rise with a potential target above the 2065 level.
GOLD Forecast and analysis for June 21, 2023
An additional signal in favor of an increase in XAU/USD quotes would be a test of the support line on the Relative Strength Index indicator. A second signal would be a rebound from the lower boundary of the wedge reversal pattern. The scenario of price increase for Gold on June 21, 2023, would be invalidated by a decrease and a breakthrough of the 1905 level. This would indicate a breakout of the support area and a continuation of the asset’s price decline to the area below the 1865 level. Expectations of an accelerated rise in XAU/USD quotes should be considered with a breakthrough of the resistance area and a close above the 1975 level. This would indicate a breakout of the upper boundary of the wedge pattern and the beginning of pattern formation with upward targets.
GOLD Forecast and analysis for June 21, 2023 suggests an attempt to develop a price correction and test the support area near the 1935 level, followed by a continuation of the rise in metal quotes with a target above the 2065 level. The scenario of price increase for Gold would be invalidated by a decrease in asset value on the markets and a breakthrough of the 1905 level. This would indicate a continuation of the Gold price decline with a potential target below the 1865 level.
