FX.co ★ Gold: more declines below 1,636 today

Gold Invites Strong Sellers!

The price of gold registered a strong downside movement after dropping below the uptrend line. As you already know, when the price drops below an uptrend line its means that the upside movement could be over.

Now, the metal has dropped below 1,639 former low which represented a downside obstacle. It has dropped as much as 1,636 today. This level represents a downside obstacle.

XAU/USD Trading Conclusion!

Gold could develop a larger downside movement if it drops below 1,636 today's low. The traders could try to sell if this scenario takes shape.