The price of Gold is trading in the red on the H1 chart. In the short term, it has rebounded but the bearish pressure remains high. It's trading at 1,860 at the time of writing. After its massive drop, a temporary rebound was somehow expected. Still, the rebound could be only a temporary one.
Fundamentally, the most important event of the week is represented by the US inflation data publication. The CPI is expected to register a 0.2% growth in April versus 1.2% in March, while the Core CPI could report a 0.4% growth versus 0.3% in the previous reporting period. Tomorrow, the fundamentals could bring high volatility and sharp movements.
XAU/USD 1,853 As Key Support!
As you can see on the H4 chart, the rate found support right below the 1,853 key level and right on the weekly S1 (1,852). As long as it stays under the downtrend line, the bias is bearish.
1,877 represents a static resistance if the rate jumps above the downtrend line. A larger downside movement could be activated by a valid breakdown below the weekly S1 (1,852).
XAU/USD Forecast!
Staying below the downtrend line and making a new lower low, a bearish closure below 1,851 could confirm a further drop and could bring new selling opportunities.
