June gold futures have just recently formed a potentially bearish rising wedge pattern on the daily bar chart. Following last week’s sharp losses, the market has seen a few sessions of tepid short covering and bottom-fishing by traders. This minor corrective bounce has formed the rising wedge formation on the daily chart. Bears would gain solid downside technical momentum by pushing and closing June gold futures below strong chart support at last week’s low of $654.10 an ounce.
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For the bulls to gain some fresh upside technical momentum, they would need to push and close June gold futures above solid chart resistance at $667.50. Gold bulls are keenly worried about the recent rebound in the value of the U.S. dollar versus the other major currencies. Continued appreciation of the greenback is likely to spell doom for the gold market bulls.
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