The price of gold rebounded in the short term after its strong sell-off. Now, it is trading at 1,794 at the time of writing. A temporary bounceback was natural, the yellow metal could test and retest the immediate resistance levels before dropping again.
Fundamentally, the XAU/USD crashed after the US reported positive data yesterday. The Unemployment Claims came in at 216K versus the 221K expected, while the Final GDP rose by 3.2%.
Today, the Canadian GDP may report a 0.1% growth, while the US Core PCE Price Index could register a 0.2% growth. These are seen as high-impact events. In addition, Personal Income, Personal Spending, Durable Goods Orders, Core Durable Goods Orders, and New Home Sales indicators are expected to come in worse compared to the previous reporting period.
XAU/USD Massive Crash!
Technically, XAU/USD rebounded after the demand zone from above the 1,783 low. Now, it is challenging 1,796 and it was almost to reach the weekly pivot point of 1,797. As you can see on the H1 chart, the rate dropped after failing to stay above the 150% Fibonacci line.
The current rebound could be temporary. It could test and retest the immediate upside obstacles before dropping again. Coming back below the upper median line (uml) may announce more declines.
XAU/USD Forecast!
A new lower low, dropping and closing below 1,783 could announce more declines and could represent a selling signal.
