XAUUSD (1222.57): Price action in gold was muted as price stalled near Monday’s highs before closing slightly bearish. On the 4-hour chart, we see the retracement taking place. This is indicative of a further decline down to the 1212.05 – 1207.00 level of support. A retest of this support would mark price action establishing support following the breakout from the ascending triangle pattern. The bias remains to the upside. However, if gold prices fail to hold near the support level, we expect further declines to invalidate the ascending triangle pattern.
