Gold is trading lower at 1,758 and it could hit the black dynamic support soon. I've told you in a former analysis that XAU/USD could decrease significantly if it falls back below the 1,800 psychological level.
Unfortunately, the price of gold failed to reach the downtrend line signaling strong sellers in the short term. Only a breakout through the downtrend line would have signaled a larger growth.
Now, it has fallen below the former peak low activating a deeper drop. The downside outlook remains intact as long as the rate stays below the downtrend line. Dropping below the dynamic support, the black sloping line could represent a new selling signal.
Trading Conclusion!
Dropping below 1,765 former low represents a selling opportunity. Breaking below the black line could signal a deeper drop towards 1,700.
