FX.co ★ Gold downside movement intact

XAU/USD minor growth

The price of gold dropped deeper after stabilizing below 1,756 as expected. Further on, it dropped to as low as 1,732 where it found demand. It tries to rebound and recover after its strong drop.

Still, as long as it stays under the downtrend line, gold could drop deeper anytime. Technically, the downtrend line represents a dynamic upside obstacle. After dropping below the uptrend line, the rate developed a new downtrend.

Trading conclusion

Staying below the downtrend line and dropping under 1,732 validates a further drop towards new lows.