The pricey metal is forming a consolidation pattern as it approaches its probable range support.
Will there be a break or a bounce?
Gold prices are edging closer to the significant psychological level of $1,900, which has served as a floor for the past few months, as you can see from the hourly chart above.
Additionally, stochastic is circling oversold levels, indicating that sellers may need a breather and that buyers may take over at this point.
If such is the case, the commodity may move higher from its current levels and refocus on adjacent upside objectives, maybe all the way up to the range's top at about $1,980.
As XAU/USD made lower highs and somewhat lower lows, a falling wedge pattern could be seen; therefore, a break above the consolidation resistance might be necessary to confirm that gold bulls are on the move once more.
On the other side, if support is broken, a downtrend with a height equal to the chart pattern may begin.
Remember that the 200 SMA and 100 SMA are trying a bearish crossover, which suggests that selling activity may intensify from this point. When trading this one, just be sure to keep an eye on statistics on crude oil supplies and market sentiment as a whole!
