The price of Gold is trading in the red at 1,921 at the time of writing. The pressure remains high after its false breakout with great separation above the immediate downtrend line. Also, XAU/USD is bearish in the short term as the Dollar Index is bullish.
Fundamentally, the FOMC Meeting Minutes could definitely bring sharp movements later today. If the yellow metal seems undecided in the short term, this high-impact event could bring strong movements. As you already know, the Federal Reserve increased the Federal Funds Rate in March and it is expected to continue to hike rates in the upcoming monetary policy meeting. Hawkish FOMC could boost the USD and could push XAU/USD down. A 0.50% rate hike is expected in May, that's why Gold could stay down.
XAU/USD Challenges Dynamic Support!
Gold challenges the ascending pitchfork's lower median line (lml). After its failure to make a new higher high and after registering a false breakout with great separation above the downtrend line, the downside pressure is high.
Still, only a valid breakdown below 1,916 could open the door for a deeper drop towards 1,895. Only staying above the lower median line (lml) and making a valid breakout above the downtrend line may activate an upwards movement.
XAU/USD Outlook!
A new lower low, dropping and closing below 1,915 could activate a potential drop towards the 1,900 psychological level. Still, don't forget that most likely we'll have sharp movements in both directions after the FOMC.
