The price of gold is trading in the red at 1,919 at the time of writing and it seems determined to approach and reach new lows. The USD remains bullish in the short term, that's why the yellow metal is bearish. Today, the Chinese CPI came in better than expected, registering a 0.3% drop compared to an expected 0.4% fall, while the PPI disappointed after registering a 4.4% drop, which is more compared to the 4.0% drop forecasted.
Tomorrow, the US inflation figures could be decisive. XAU/USD is expected to register strong moves around this high-impact event.
XAU/USD Strong Downside Movement!
As you can see on the H1 chart, the rate failed to come back to reach and retest the channel's upside line, signaling strong downside pressure.
The former low of 1,924 and the weekly S1 (1,920) represented downside obstacles. The price dropped and closed below these levels, activating more declines.
XAU/USD Outlook!
Closing below S1 (1,920) announced more declines and was seen as a new selling opportunity. The downside line stands as a potential target.
