Scotiabank's strategists Shaun Osborne and Eric Theoret describe Gold trading in a tight consolidation around $4500/oz, forming the lower bound of a descending triangle pattern. They characterize this formation as bearish and expect a downside resolution in due course, although they note that Gold prices are still holding for now despite the negative technical backdrop.

Descending triangle signals downside risk

"Market sentiment took a meaningful tumble on Monday as Iran announced the cessation of negotiations with the US, in protest over Israel, and left markets trading defensively for much of the day."

"In precious metals, the price of gold appears to have settled into a tight consolidation range around $4500/oz."

"The level continues to form the lower bound of a descending triangle (bearish) formation."

"A bearish resolution is expected, but gold appears to be holding on—for now."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)