FX.co ★ Gold: more declines expected

XAU/USD New Downtrend!

The price of gold turned to the downside and now is trading at 1,753 at the time of writing. Dropping below the uptrend line signaled that the uptrend is over and that the price could develop a new downside movement.

The downtrend line represents a dynamic upside obstacle. As long as it stays below it, the rate could drop deeper. Now, it has dropped also below 1,756 former low which represented a downside obstacle.

Gold Trading Conclusion!

Stabilizing below the 1,756 broken obstacle may signal further drop as long as it stays under the downtrend line.