Gold is now trading in a bearish wave with negative divergence on the daily frame near the support levels at 2600, and therefore we expect a rebound from these areas again and a rise to the 2680 levels as they are the neckline levels of the head and shoulders pattern and the formation of the right shoulder of the pattern.

Once the right shoulder is completed, we can enter selling positions by closing below the 2660 levels, with the first target at the 2600 levels as the pattern is completed at the neckline and after the break and retest, we target the 2530 levels as a second target, then the 2480 levels, then the 2430 levels as the final target for the head and shoulders pattern.

This scenario fails by closing above the 2730 levels or returning again to the main peak in the event of a development in geopolitical events or the US Federal Reserve cutting interest rates at an accelerated rate equivalent to 75 points in its last meeting for the year 2024 scheduled to be held on December 18.