The price of gold drops like a rock at the time of writing. It was trading at 1,635 below 1,645 today's high. The price drops as the Dollar Index tries to rebound and recover after today's sell-off. Technically, the yellow metal maintains a bearish bias as long as it stays below the immediate resistance levels.
Gold rallied in the early morning even if the Australian data came in mixed. The Unemployment Rate came in at 3.5% matching expectations while Employment Change came in at 0.9K versus 25.0K expected.
Earlier today, the US data came in mixed as well. The Philly Fed Manufacturing Index and CB Leading Index came in worse than expected, while Unemployment Claims and Existing Home Sales came in better than expected.
XAUUSD New Sell-Off!
Technically, it rebounded after reaching the weekly S1 (1,623). It jumped above the median line (ml) and reached the downtrend line where it found resistance. As you can see on the H1 chart, the price registered only a false breakout through the downtrend line and now it seems very heavy.
Technically, it seems that the rebound was only temporary. The first major downside target is represented by the S1 (1,623). It could drop deeper as long as it stays under the median line (ml) and under the downtrend line.
XAU/USD Forecast!
A new lower low, a valid breakdown below the S1 (1,623) activates more declines and brings a new short opportunity.
