The price of gold is trading in the red at 1,915 on the H1 chart at the time of writing. The downside pressure remains high as the USD is bullish. You knew from my previous analyses that XAU/USD could approach and reach new lows despite minor retreats.
Earlier, the US PPI and Core PPI indicators reported a 0.3% growth versus the 0.2% growth estimated, boosting the USD. This is the reason why the yellow metal dropped. Later, the US Prelim UoM Consumer Sentiment could be decisive and is expected at 71.4 points.
XAU/USD Outlook!
As you can see on the h1 chart, the rate came back to retest the downtrend line, representing a dynamic resistance and the weekly S1 (1,920). It has registered only a false breakout with great separation signaling strong downside pressure.
Now, it could approach and reach the 1,910 former low which represents a static downside obstacle.
XAU/USD Outlook!
Staying below the downtrend line and making a bearish closure below 1,910 is seen as a selling signal.
