The price of gold is bearish in the short term and it seems determined to hit new lows as the USD is bullish. XAU/USD tried to rebound after registering a strong sell-off. Technically, the rate could test and retest the near-term resistance levels before going down.
Fundamentally, the UK, French, German, and Eurozone Flash Manufacturing and Flash Services PMI came in worse than expected today. Gold remains under downside pressure as the US Flash Manufacturing PMI came in at 49.0 points versus 46.1 points estimated, while Flash Services PMI dropped to 52.4 points from 54.4 points, below 54.0 points expected.
XAU/USD Under Strong Selling Pressure!
XAU/USD is moving sideways after taking out the lower median line (lml) of the ascending pitchfork. Dropping below this downside obstacle announced a larger downside movement.
Now, the 1,956 immediate low represents a downside obstacle. 1,969 stands as a resistance level.
XAU/USD Forecast!
Dropping and closing below 1,956 activates more declines and is seen as a new selling signal.
