The price of gold resumed its sell-off and is trading at 1,812 at the time of writing. XAU/USD ignored the near-term downside obstacles confirming a larger drop in the short term. USD's strong appreciation forced the yellow metal to drop.
Fundamentally, the USD received strong support from the US economy. Revised UoM Consumer Sentiment, New Home Sales, Core PCE Price Index, and Personal Spending came in better than expected.
XAU/USD Strongly Bearish!
As you can see on the H1 chart, the rate registered an aggressive breakdown through the S1 (1,817) and through the 61.8% (1,816) confirming strong sellers. You knew that the bias remains bearish as long as it stays below the downtrend line.
Still, after its massive drop, we cannot exclude a temporary rebound, the rate could try to test and retest the broken levels before extending its sell-off.
XAU/USD Forecast!
Gold is bearish, further drop was activated after taking out the 61.8% retracement level and the S1. Testing and retesting these broken obstacles, registering false breakouts bring new selling opportunities. Also, a new lower low, dropping and closing below today's low of 1,809 could bring potential shorts.
