Gold is trading in the red at 1,874.52 at the moment of writing. Unfortunately, its failure to reach the immediate 1890.14 high signaled that the buyers are exhausted. Still, the bias is still bullish, so it could resume its growth anytime.
Gold could react aggressively around the US Flash Manufacturing PMI and Flash Services PMI data dump. Better than expected data could force the yellow metal to decrease, while poor US figures could boost the price of gold.
XAU/USD Seems Undecided!
The bias is bullish as long as XAU/USD stays above the R2 (1,870.13). Technically, it seems vulnerable in the short term after failing to reach the R3 (1,894.18).
Moreover, failing to approach and reach the upper median line (uml) of the ascending pitchfork could announce a potential downside movement towards the median line (ml).
Gold Outlook!
Dropping and closing below R2 (1,870.13) could announce a sell-off towards 1,856.61. On the other hand, staying above this static support and a bullish closure above 1,883.98 immediate high may confirm a further growth towards the 1,900 psychological level.
