FX.co ★ Gold comes under selling pressure

Gold is trading somehow sideways in the short term being located at 1,778.06 level at the time of writing. Technically, the yellow metal has taken out strong downside obstacles, so the bias is bearish. Still, it remains to see what will really happen as the Dollar Index moves sideways as well.

XAU/USD slipped lower after Powell's remarks and after the US ADP Non-Farm Employment Change was reported at 534K above 524K forecasts, while the ISM Manufacturing PMI increased from 60.8 to 61.1 points signaling further expansion. Today, Gold could react also around the OPEC-JMMC Meetings.

The US Unemployment Claims indicator is expected to increase from 199K to 238K in the previous week which could be bad for the USD and could help XAU/USD to rebound. Also, the FOMC members' speeches could shake the markets later today.

XAU/USD Under Massive Pressure!

XAU/USD retested the broken uptrend line and now is traded below 1,782.04 static support. As long as it stays below this level and under the descending pitchfork's median line (ml), gold could extend its downside movement.

A new lower low, a bearish closure under the 1,769.80 could activate a deeper drop. The descending pitchfork's lower median line (lml) and the 150% Fibonacci line are seen as dynamic support levels.

Gold Forecast!

XAU/USD could approach and reach new lows if it stays under the median line (ml). Dropping and closing below the S1 (1,764.67) could bring new selling opportunities.