The price of gold is moving sideways in the short term. It's trading at 1,818 at the time of writing. The downside pressure remains high, so more declines are natural. Still, a downside continuation needs confirmation.
Fundamentally, XAU/USD slipped lower as the US reported better-than-expected data earlier. The US Unemployment Claims came in at 207K versus 211K expected, while the Trade Balance increased from -64.7B to wil-58.3B. Tomorrow, the US will release the NFP, Unemployment Rate, and Average Hourly Earnings.
XAU/USD Triangle!
As you can see on the H1 chart, XAU/USD is trapped between the 1,829 and 1,815 levels. The price action developed a triangle pattern.
Now, it has dropped again below the weekly S1 (1,821) signaling strong downside pressure. Also, its failure to make a new higher high announced strong sellers.
XAU/USD Outlook!
A new lower low, dropping and closing below 1,813 is seen as a selling opportunity. The S2 (1,793) represents a potential market target if the rate continues to drop.
On the other hand, staying above 1,815 and making a valid breakout through 1,829 brings new longs.
