The price of Gold crashed in the short term as the Dollar Index rebounded. It dropped as much as 1,638 on Friday where it has found support. After its massive drop, a rebound was natural. The rate could test and retest the near-term resistance levels before dropping again.
Fundamentally, the BOJ maintained its monetary policy unchanged while the US data came in mixed. The fundamentals could drive the price during the week ahead. RBA is expected to increase the Cash Rate from 2.60% to 2.85%, the FOMC could increase the Federal Funds Rate to 4.00%, while the NFP is expected at 200K in October. The US is to release high-impact data, so the volatility could be high.
XAU/USD Hovers Above Support!
XAU/USD turned to the downside after failing to stabilize above the uptrend line. It has found support on the 1,640 but the downside pressure remains high. DXY's drop could help the yellow metal to register a strong rebound.
Staying below the channel's downside line and making a new lower low validates more declines. Coming back and stabilizing above 1,645 and above the downside line may announce potential growth at least towards the downtrend line.
XAU/USD Forecast!
A new lower low, dropping and closing below 1,638 activates more declines and offers new short opportunities.
