Bears could be emerging in spot gold following the spinning top pattern
The price of precious metals continued its decline on Friday, closing at 104.40 in New York amid increased demand for the U.S. Dollar (US DXY).
This week, the market focus will be on U.S. GDP figures on Thursday and the PCE Price Index release on Friday.
Investors are closely monitoring the next crucial data release, the U.S. GDP figures and the Fed's favoured inflation measure, the Core MoM PCE Price Index, which is anticipated to decrease to 0.3% from 0.4%.
Additionally, speeches from various Fed officials, including Chair Jerome Powell, will be scrutinized for further insights into monetary policy.
Based on technical analysis, the Relative Strength Index (RSI) 3-day 'lookback' indicator is mixed.
The Moving Average Convergence Divergence (MACD) is also weak, and the ADX indicator supports a ranging market.
Since the bearish spinning top emerged, caution has been advised due to the expected high volatility.
This pattern signals potential weakness and a reversal, characterized by a small real body with long upper and lower shadows in an uptrend.
If downside pressure resumes, it might test the critical area around $2,140-60.
Traders should consistently reassess at key levels and adjust strategies accordingly.
Daily Chart Spot Gold
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