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Daily GOLD Forecast – 5.12.2023

The recent market dynamics align closely with my previous analysis. The resistance faced rejection, evident in the formation of a substantial bearish rejection bar, followed by a downward impulse leg. The price breached and settled below the confines of the upward channel. In my assessment, the market is likely to undergo a period of consolidation, as it typically exhibits sideways movements following such pronounced shifts. However, should the price undergo a retest of the resistance zone, I will be on the lookout for selling signals, given the structural break that was repeatedly tested in the past. On the 1-hour timeframe, I anticipate a two-legged pullback toward the resistance. My target is the preceding support level at 2006.200.