Gold Price Forecast: XAU/USD remains bearish, with $3,345 likely to hold bulls  

• Gold is on a corrective recovery against the US Dollar with resistances at $3,345 and $3,360.
• Market expectations of a strong GDP and a hawkish Fed keep the Greenback buoyed near highs
• XAU/USD is forming a Bearish Flag pattern, with its measured target at $3,245.

Gold (XAU/USD) is moving higher on Wednesday, favoured by a somewhat softer US Dollar, as investors trim their recent USD long positions ahead of the US Preliminary GDP release and the Fed monetary policy decision, due later today.

The precious metal, however, remains trading within recent ranges, as the strong US macroeconomic figures seen recently and market expectations of a significant recovery of the US Gross Domestic Product are feeding expectations of a "hawkish hold" by the Fed.

Technical analysis: The target of the Bearish Flag is $3,245

The XAU/USD is showing an increasing bearish momentum. The pair broke below the bottom of the ascending channel from late June lows, highlighting a bearish flag formation. The current rebound is likely to be a corrective reaction from oversold levels on intra-day charts.

Upside attempts are likely to be challenged at Monday's high of $3.345 and the mentioned trendline support, now turned resistance, at $3,360. The pair needs to return above these levels to break the near-term bearish structure and shift the focus to the July 22 nd 23 lows, at $3,380.

To the downside, further depreciation below Monday's low, at $3,295, might find support at the June 30 low of $3.245, which is the measured target of the bearish flag.

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