The price of gold is trading at 1,975 at the time of writing and it is trying to recover after the last sell-off. The USD's depreciation helped the XAU/USD buyers to push it higher again in the short term.
Gold registered a strong sell-off from today's high of 1,984 to 1,965 today's low. Tomorrow, the fundamentals should bring high volatility and sharp movements. The US is to release the FOMC Meeting Minutes while Canada publishes the Consumer Price Index. Also, the Australian Monetary Policy Meeting Minutes and RBA Governor Bullock's speech could have an impact as well.
XAU/USD Bullish Momentum!
Technically, XAU/USD activated the Rising Wedge pattern, signaling more declines. Now, it has rebounded but the bearish pressure remains bearish as long as it stays below the minor downtrend line.
The 1,978 level represents static resistance, while 1,965 stands as static support. Only taking out the downtrend line may announce that the sell-off ended.
XAU/USD Forecast!
False breakouts above the downtrend line may announce a new sell-off. A new lower low, a bearish closure below 1.956 activates more declines and is seen as a selling opportunity.
On the other hand, jumping and stabilizing above the downtrend line and passing above 1,978 activates further growth.
