The previous metal was seen rising slightly higher on the day by Wednesday’s close. However, the gains in the precious metal were rather muted. Gold prices failed to advance on the rising risk aversion, which could possibly indicate that a top has been formed. Economic data from the US was also limited, keeping gold prices in check.
XAUUSD Has Likely Formed a Top
Failure to post higher highs on the back of the recent risk aversion gives rise to the view that gold prices might be forming a top. After rising to a fresh six-year high at 1532, gold failed to rebound above this level. While support has been established at 1494, failure to post higher highs could signal a possible consolidation or a move lower. Watch the support at 1494 which could give further clues. A close below this level could signal further declines in gold prices.
