Gold Prices May Fall as Sentiment Swell Helps Validate Chart Setup

London (Jan 25)  Gold prices edge past trend line support, hinting a top is forming.

A narrow pullback in gold prices kept them confined within familiar trading ranges. The yellow metal may find a bit more scope for directional development in the final hours of the trading week as broad-based market sentiment trends gather momentum. 

Risk appetite swelled in APAC trade and bellwether S&P 500 futures are pointing convincingly higher, hinting that more of the same is likely ahead. That might translate into higher bond yields as capital flows out of the safe harbor of government debt, punishing non-interest-bearing assets that gold epitomizes.

DailyFX