The price of gold is trading in the red at 1,957 at the time of writing. The selling pressure remains high as the USD is strongly bullish in the short term. Still, a larger drop needs confirmation. The yellow metal remains under pressure after the manufacturing and services data.
Later, the CB Consumer Confidence data could be decisive. The economic indicator is expected at 112.1 far above 109.7 in the previous reporting period. USD's rally after the US data should send XAU/USD towards new lows. Also, tomorrow, the Australian inflation data and the FOMC should really shake the markets.
XAU/USD False Breakout!
XAU/USD tested and retested the downtrend line, registering only false breakouts. It came back below the warning line (wl1) and it could challenge the 1,956 - 1,953 support zone again.
Stabilizing below the warning line (wl1) of the ascending pitchfork may announce a larger downside movement.
XAU/USD Forecast!
A bearish closure below 1,953 activates more declines. This is seen as a selling opportunity.
