FX.co ★ Gold: deeper drop still possible

XAU/USD Temporary Rebound?

The price of gold increased a little in the second part of the day as the US Dollar depreciated versus other major currencies. It was trading at 1,716 at the time of writing. In the short term, it has found strong demand at 1,710 and now it has retested the 1,721 former low which stands as an upside obstacle.

The downtrend line represents a dynamic upside obstacle. On the other hand, the 1,710 today's low represents a downside obstacle.

Gold Trading Conclusion!

Staying below the downtrend line and dropping below 1,710 could confirm a downside continuation and could bring new selling opportunities.