If XAU/USD breaks above $2,685, this would invalidate the bearish scenario, signaling continued growth toward $2,735. However, a confirmed drop below $2,605 would suggest further downside, marking a breakout of the lower border of the bullish channel.
Currently, a minor bullish correction toward the $2,665 resistance area is possible, but the downtrend remains dominant. A continuation of the decline is expected, with a target below $2,575.
The bearish outlook will be nullified if the price surges significantly, breaking above $2,685, indicating a potential rally with targets surpassing $2,735.