The price of gold is trading in the red at 1,990 at the time of writing. It has turned to the downside as the Dollar Index jumped higher. The USD's appreciation forces XAU/USD to hit new lows. Still, the bias is bullish, so a downside movement is far from being confirmed.
Today, the volatility was low as the US banks were closed. The UK manufacturing and services data came in better than expected, while the Eurozone and German data came in mixed. Later, the New Zealand Retail Sales is expected to report a 0.8% drop, while Core Retail Sales may announce a 1.5% drop. The economic data should move the rate in the short term.
XAU/USD 1,986 Key Support!
Technically, XAU/USD is trapped between 1,998 and 1,986 levels. Escaping from the up channel pattern announces a potential leg down. Still, the rate came back higher to test and retest the broken uptrend line.
Personally, I've drawn a descending pitchfork hoping that I'll catch a downside movement. As long as it stays below the upper median line (uml), XAU/USD could drop.
Gold Forecast!
Dropping and closing below 1,986 activates more decline and is seen as a selling opportunity. The median line (ml) is seen as a potential target.
