Are gold bulls struggling to sustain the valuable metal’s climb nowadays?

Here’s a classic reversal pattern I’m watching on the 4-hour time-frame.

Gold (XAU/USD) 4-hour Chart by TradingView

Gold made a few failed attempts to bust through its July highs across the $2,475 area, falling back to the realm of interest near $2,375 to form a double top pattern.

Recession jitters appear to be haunting investors again nowadays, as consecutive misses in top-tier U.S. data points have sparked some risk-off flows in the most recent trading sessions.

XAU/USD has yet to check and break below the neckline support to substantiate a possible reversal from the uptrend, because the 200 SMA dynamic inflection point at S1 ($2,382.18) appears to be keeping losses at bay for now.

Is the support zone more likely to hold over again?

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. When you haven’t yet done your homework on gold and market sentiment, then it’s time to envision out the economic calendar and stay updated on day by day fundamental news!

Risk assets like commodities are still on weak footing, although the market panic appears to have eased thus far. Stay in your toes for an additional wave of risk-off vibes, as these could possibly be enough to spur a neckline breakdown and a gold selloff that’s the identical height because the chart formation.

On the flip side, sustained risk-taking on a recovery in U.S. equities or a fresh batch of positive global data points could possibly be enough for the ground to carry, potentially keeping gold on course towards bouncing back to the highs near R1 ($2,490.26).

Whichever way you select to play this setup, make sure that to practice proper risk management techniques and stay updated on the most important market catalysts lined up!