The price of gold crashed in the short term and now is located at 1,974 at the time of writing far below today's high of 1,987. The yellow metal turned to the downside as the USD appreciated versus its rivals today. Technically, XAU/USD signaled exhausted buyers, so a correction could be natural.
Fundamentally, XAU/USD accelerated its sell-off after the US Unemployment Claims indicator was reported at 228K in the last week versus 239K expected and compared to 237K in the previous reporting period. In addition, the Philly Fed Manufacturing Index came in worse than expected but better compared to the previous reporting period. Later, the CB Leading Index and Existing Home Sales should be decisive.
XAU/USD 1,969 Static Support!
Technically, the rate registered only a false breakout through 1,984 and now it has dropped below the median line (ml). Actually, it is challenging the confluence area formed at the intersection between the median line (ml) with the R1 (1,975).
The next downside target is represented by the 1,969 level. This stands as a critical obstacle. Staying above it may announce a potential upside continuation.
XAU/USD Forecast!
Consolidation above the median line (ml) and making a bullish closure above 1,984 and above 1,987 today's high is seen as a bullish signal.
