Gold has rebounded due to the USD's retreat but this could be only a temporary rebound before dropping deeper. Technically, the rebound could be natural after the last massive drop.
The rate could come back to test and retest the broken levels before reaching new lows. Gold has recovered a little as the US Unemployment Claims increased to 870K in the previous week. The Durable Good Orders could increase by 1.1%, while the Core Durable Goods Orders may register a 1.0% growth in August. A higher increase could boost the USD and could push the price of gold down.
XAU/USD drop was stopped at $1,848 level and now is fighting hard to come back higher. It remains to see if the rate will have enough bullish energy to reach and retest the S3 ($1,890) and the $1,900 psychological level.
A temporary rebound could bring a selling opportunity. Gold has failed to stay under $1,862 former low, for now. Another drop below this downside obstacle could suggest selling with a potential target at $1,800 level.
- GOLD Trading Tips
Dropping and stabilizing below $1,862 activates a short opportunity with a potential target at $1,800 psychological level. Also, a false breakout with great separation above the S3 ($1,890) or above $1,900 could suggest selling as well.
