FX.co ★ Gold vulnerable to drop deeper

Gold Reached Demand Level!

The price of gold registered a strong downside movement. As long as it stays under the downtrend line, XAU/USD could resume its drop. Still, in the short term, Gold reached the 1,875 former high which represents a downside obstacle (upside obstacle turned into a downside obstacle).

Now, it tries to grow after failing to stabilize under this level. It could register only temporary growth. A larger growth could be confirmed if the rate stays above 1,875 and if it jumps stabilizes above the downtrend line.

Gold Trading Conclusion!

Staying below the downtrend line and dropping below 1,875 could announce a deeper drop and could bring new selling opportunities!