For quite some time, despite not making any headway, gold still looked poised for higher prices, but that outlook recently took a big hit at the June Fed meeting. The one-week decline of 6% in June was the largest 5-day loss since markets freaked out in March 2020.

There is a slope that could become pivotal in the coming period, rising up from May 2019. If that can’t keep the price buoyed, then XAU/USD may be looking to support right around the 1675 level. There was some play on this as resistance around the time Covid hit markets and then not long after as support. It also put a floor in twice in March.

Stabilizing around one of the aforementioned areas of support will be a starter for gold to possibly keep its longer-term trend intact, but there will still be much work to be done before it can embark on another bull market leg.

Another potential scenario is that we see horizontal support, and the trendline off of the summer 2020 high, keep prices confined and wedging towards the apex of a triangle pattern. This will likely take a while to form, but something to keep on our minds as we progress through the back half of the year.

For the next quarter, the technical outlook doesn’t appear set to offer any real clean looks, so we might need to be patient before establishing a firmer intermediate-term trading bias.

Gold Weekly Chart

Gold Q3 Technical Forecast: Gold Technical Outlook Took a Big Hit

Source: TradingView

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