The price of gold remains bearish in the short term, so a deeper drop is still in the cards. It's trading at 1,863 at the time of writing. It could extend its downside movement as long as it stays below the near-term resistance levels.
Fundamentally, the Canadian Unemployment Rate and Employment Change came in better than expected. In addition, the US Prelim UoM Consumer Sentiment came in at 66.4 points versus the 65.0 points expected. USD's growth after positive data could force the yellow metal to drop.
XAU/USD Range Breakout!Technically, after registering false breakouts above 1,881.40 and above the upper median line (uml), the rate signaled exhausted buyers and a potential sell-off.
Now, it has escaped from the range pattern to the downside. It has retested the 1,867 historical level, the 38.2% (1,871) retracement level, and the upper median line (uml). These represent upside obstacles.
XAU/USD Forecast!The former low of 1,852 represents static support. A valid breakdown below it may announce more declines and is seen as a selling opportunity. As long as the metal stays under the upper median line (uml), the rate could be attracted by the median line (ml)