FX.co ★ Gold exhausted buyers

The price of gold is going down at the time of writing. In the short term, XAU/USD registered a strong rebound, but the rate reached a dynamic resistance and now it has turned to the downside. In the short term, the downside pressure remains high. Anything could happen as the fundamentals generated by the geopolitical tensions could change the sentiment.

XAU/USD is trading at 1,925 level at the time of writing far below 1,938 yesterday's high. Today, the US Core PCE Price Index is expected to register 0.4%, while the Unemployment Claims indicator could increase from 187K to 195K in the last week. Also, the Canadian GDP is seen as a high-impact event that could bring some action on XAU/USD.

XAU/USD Temporary Rebound!

XAU/USD registered a strong rebound after printing a false breakdown below 1.895. It has reached the former uptrend line, the channel's downside line which turned into a dynamic resistance. The price retreated and now it challenges the weekly S1 (1,923). This level acts as support.

After its strong growth, a temporary retreat was somehow expected. Dropping and stabilizing below the S1 may open the door for a deeper drop.

XAU/USD Outlook!

Consolidating above the S1 (1,923) could signal a new bullish momentum and could bring new long opportunities. A valid breakdown below this obstacle may announce more declines in the short term.