Gold changed little after yesterday's aggressive rally. Maybe a temporary decline was somehow expected after the strong rebound. The yellow metal has bounced back after reaching a support zone.
USD's temporary decline helped XAU/USD to rebound in the short term. It remains to see what will really happen ahead and after the FOMC. Personally, I believe that a larger growth registered by the DXY could really push the price of gold towards new lows.
XAU/USD Temporary Rebound?
XAU/USD has registered only a false breakdown through the ascending pitchfork's lower median line (lml) and below the S2 (1,850.00). Now, it has found resistance at the inside sliding line (sl) of the ascending pitchfork.
The price has come down to retest the S1 (1,863.77) and now it tries to resume its growth. Technically, it could move sideways before deciding direction. It could test and retest the lower median line (lml) again.
Outlook!
Gold could register a larger drop only if it makes a valid breakdown through the ascending pitchfork's lower median line (lml).
Staying above the S1 and within the ascending pitchfork's lower median line (lml) could bring a potential growth towards the weekly pivot point (1,883.96).
