FX.co ★ Gold bounce to end soon

The price of gold rebounded in the short term. It is trading at 1,907 at the time of writing and is fighting hard to come back higher. After its massive drop, a temporary rebound was natural. It could reach and retest the immediate resistance levels before dropping again.

Today, the US is to release significant economic data. The economic metrics could have a big impact on XAU/USD. The Durable Goods Orders indicator is expected to register a 1.0% growth, Core Durable Goods Orders may report a 0.5% growth, while the CB Consumer Confidence could announce a potential growth from 107.2 to 108.5 points. Better than expected US data could boost the USD and could punish the price of gold.

XAU/USD Retests The Sellers!

XAU/USD was about to hit the 100% (1,889) level which represents a major downside obstacle. Now, the metal is trading at 1,906 level at the time of writing. A temporary rebound is natural. The 78.6% (1,913) and the descending pitchfork's median line (ML) represent upside obstacles.

Staying below these levels, testing and retesting, registering only false breakouts may signal that the rebound ended and that the price could come back down. Only a valid breakout above these resistance levels could signal further growth.

XAU/USD Forecast!

False breakouts above the median line (ML) and above the 1,913, or a major bearish engulfing could bring new selling opportunities. The bias remains bearish as long as it stays under the median line (ML).