The price of gold turned to the downside and was trading at 1,950 at the time of writing. USD's appreciation forced the XAU/USD to lose altitude. DXY's larger rebound could bring more sellers to the yellow metal.
Fundamentally, the current sell-off is natural after the US Prelim UoM Consumer Sentiment came in better than expected on Friday. It was reported at 63.9 points versus 60.1 points estimated. Tomorrow, the Australian Monetary Policy Meeting Minutes, the Eurozone data, and the US Building Permits and Housing Starts could have an impact.
XAU/USD new leg down
Technically, the price of gold dropped below the median line (ml) of the ascending pitchfork, signaling a potential leg down. You knew from my previous analysis that a new lower low and stabilizing below the median line opens the door for more declines.
XAU/USD retested the median line (ml) and now it could try to approach and reach the 1,947 today's low.
XAU/USD outlook
A new lower low, closing below 1,947 activates more declines and brings new short opportunities.
