Stronger USD Exerts Pressure on Gold, Potential Bearish Breakout Looms

The chart reveals initial signs of weakness in early May, as the price failed to surpass the long-term resistance level around 2060 USD/oz (grey). This unsuccessful attempt marked the third peak of a triple top formation (yellow). On May 16th, the price breached the neckline of this pattern, triggering a sell signal.

Subsequently, Gold experienced a moderate decline, entering a sideways phase confined within a rectangle pattern (orange lines). The recent downward move has brought the price closer to the lower boundary of the rectangle, reigniting concerns of a potential breakout and continuation of the downtrend.

Regarding rectangle patterns, price action is relatively straightforward. A breakdown below the lower boundary would signal a selling opportunity, while an upward breach of the upper boundary would indicate a potential long position. Currently, the likelihood of the former scenario appears slightly more probable.