The price of gold climbed as much as 1,879 today where it has found strong supply. Now, it has turned to the downside as the Dollar Index rallied. USD's appreciation versus its rivals could force the yellow metal to approach and reach new lows.
Fundamentally, the USD reported mixed data today. The Revised UoM Consumer Sentiment came in at 68.1 points above 67.7 expected, Chicago PMI came in worse than expected at 44.1 points versus 47.5 points , while Core PCE Price Index reported only a 0.1% growth versus the 0.2% growth estimated.
XAU/USD Challenges Key Support!Technically, XAU/USD jumped above the downtrend line and reached the 1,879 static resistance. It has turned to the downside after registering only a false breakout with great separation above the S3 (1,876).
Now, it is challenging the downtrend line again. This represents dynamic support, while the 1,857 stands as a static obstacle.
XAU/USD Forecast!A bearish closure below 1,857 activates more declines and brings new selling opportunities. Only false breakdowns below the immediate support levels may announce a new bullish momentum.