The precious metal extended declines last week to test the support level of 1671.95.
However, price action quickly reversed those declines to move modestly higher.
XAU/USD is now trading within the levels of 1712.50 and 1671.95.
A lower high formation within these levels could signal the right shoulder.
For the moment, the head and shoulders pattern is still evolving.
A drop back to the 1671.95 level could, however, confirm this view.
