Hello everyone. Gold prices extend pullback as Middle East worries ease US dollar weakens amid upbeat mood, despite recovery in US Treasury yields. Gold prices target $2,350 on sustained break below $2,370 on 4-hour chart.
On H1, the $2350 support level is formed and it seems that the market maker is trying to rally the price back up, testing the breakout resistance or $2370 before falling further. And if the price quickly returns to support from resistance, Fibonacci also indicates strong selling pressure from this level, then the possibility of a breakout increases. According to statistics, the strongest fluctuations are after the breakthrough. I expect a correction after the false breakout. Consolidation below this level confirms that the market is ready for a correction.
Overall, XAUUSD market fundamentals and technicalities are showing weakness so we can expect a bearish scenario at the moment.
