FX.co ★ Gold to reach 1,626 as expected

The price of gold crashed after failing to make a new higher high. It was trading at 1,627 at the time of writing and it seems very heavy as the USD dominates the currency market. You knew from my previous analysis that XAU/USD could drop anytime after ending its temporary rebound.

Fundamentally, XAU/USD could be saved from the downside only by worse than expected US data tomorrow. The CB Consumer Confidence is expected to jump from 103.2 to 104.0. Furthermore, the Durable Goods Orders, and Core Durable Goods Orders indicators are expected to come in better compared to the previous reporting period.

XAU/USD Seems Unstoppable!

I've told you in my previous analysis that XAU/USD could drop again if it fails to jump and close above 1,649 today's high. As you can see on the H1 chart, Gold failed to stay above 1,641 signalings strong bearish pressure.

The bias is bearish as long as it stays under the downtrend line. Now, it is challenging the 1,626 previous low and the weekly S1 (1,626).

XAU/USD Outlook!

A valid breakdown below 1,626 signal a downside continuation. This brings new short opportunities.