The price of Gold plunged after the FOMC Minutes came in more hawkish than expected. The yellow metal failed to resume its upwards movement, now, it's located in the seller's territory. It's traded at the 1,789.65 level above 1,786.42 yesterday's low. In the short term, the selling pressure remains high, it could approach and reach fresh new lows if the Dollar Index jumps higher.
The United States economic data could be decisive today. The Non-Farm Employment Change is expected at 426K in December versus 210K in November, the Unemployment Rate could drop from 4.2% to 4.1%, while the Average Hourly Earnings may report a 0.4% growth. The volatility will be high around these high-impact figures, XAU/USD could register sharp movements in both directions.
XAU/USD Upside Invalidated
Technically, XAU/USD chaleges the 1,789.49 static support after retesting the broken uptrend line. As you can see on the h4 chart, the price registered only a false breakout above it signaling strong downside pressure.
Still, after its amazing sell-off, we cannot exclude a temporary rebound if the Dollar Index drops around the US data dump. Poor US figures could weaken the USD and could boost the yellow metal.
XAU/USD Forecast!
1,789.49 and 1,784.90 represent strong downside targets. It remains to see how the price reacts around these downside obstacles. A new lower low, a bearish closure below 1,784.90 could open the door for a larger downside movement.
Also, a minor rebound towards the 1,800 psychological level or a sideways movement could announce that the XAU/USD could extend its downside movement. Only a bullish pattern here around the support levels could announce a new swing higher.
