The price of Gold rallied as the Dollar Index crashed. It was trading at 1,676 at the time of writing and seems determined to approach and reach the near-term resistance levels. DXY's larger drop could force the yellow metal to develop a larger rebound.
Technically, after its massive drop, a temporary rebound was natural. Fundamentally, XAU/USD rallied in the last hours as the US Prelim UoM Consumer Sentiment came in at 59.5 versus 60.0 points expected.
XAU/USD Throwback!
As you can see on the H1 chart, the rate found support on the weekly S3 (1,657) and on the pitchfork's lower median line (lml). Now, it has almost reached 1,680 which stands as an upside obstacle.
Also, the median line (ml) represents a dynamic resistance. As long as it stays under these levels, XAU/USD could drop again. Only jumping and closing above the 1,688 could activate a larger rebound.
XAU/USD Outlook!
False breakouts through the 1,680 and above the median line (ml) could announce a new sell-off. The current rebound could bring new selling opportunities as the bias remains bearish as long as it stays under 1,688.
