GOLD continue to move as part of the correction and the formation of a large inverted “Head and Shoulders” reversal pattern on higher timeframes. At the time of the publication of the forecast, the price of GOLD is 1759 Dollars per Troy Oz. Moving averages indicate a short-term bearish trend. Prices broke through the area between the signal lines upward, which indicates pressure from the sellers of the asset and a potential continuation of the fall from the current levels. At the moment, we should expect an attempt to develop a decline and test the support level near the 1745 area. Where can we expect a rebound and a continued rise in the price of GOLD with a potential target above the level of 1840.
XAU/USD Forecast and GOLD analysis October 6, 2021
An additional signal in favor of raising the XAU/USD quotes will be a test of the support area on the relative strength index (RSI). The second signal will be a rebound from the upper border of the Wedge reversal pattern. Cancellation of the option to raise GOLD prices on October 6, 2021 will be a fall and a breakdown of the level of 1705. This will indicate a breakdown of the support area and a continued fall to the area below the level of 1675. Expect an acceleration of the rise in XAU/USD quotes with the breakdown of the resistance area and closing of the price above 1785.
XAU/USD Forecast and GOLD analysis October 6, 2021 implies an attempt to test the support area near the level of 1745. Further, the growth of quotations with a target above the level of 1840 will continue. This will indicate a breakout of the support area and cancellation of the pattern. In this case, we should expect the GOLD price to continue to decline with a potential target below the level of 1675.
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