Gold is trading in the red at 2,013 at the time of writing. It has turned to the downside again, erasing the latest gains. In the short term, the downside pressure remains high, despite temporary rebounds.
Surprisingly or not, the yellow metal crashes even if the US Prelim UoM Consumer Sentiment came in at 57.7 points versus 63.0 points estimated. In addition, Prelim UoM Inflation Expectations reported a 4.5% growth versus 4.6% growth in the previous reporting period.
XAU/USD Rejected By Confluence Area!As you can see on the H1 chart, the rate rebounded after failing to hit the 1,999 former low. It has reached the weekly pivot point of 2,020, 2,022, and the upper median line (uml). These represent upside obstacles, the rate registered only false breakouts through the confluence area formed at the intersection between these resistance levels signaling that the bullish momentum ended.
As long as it stays within the descending pitchfork's upper median line (uml), XAU/USD could come back down towards the 2,000 psychological level.
XAU/USD Outlook!A new lower low, a bearish closure below 1,999 activates more declines and is seen as a new selling opportunity. The median line (ml) represents a potential downside target.
Only a new higher high could bring new longs with a potential target at 2,048.