FX.co ★ Gold aiming at 61.8% retracement level

The price of gold seems undecided in the short term. Still, the USD's appreciation forced the yellow metal to slip lower again. The bias remains bearish after the US services sector confirmed an expansion. XAU/USD is trading at 1,833 at the time of writing, below the 1,846 daily high.

Gold changed little after the RBNZ. The Official Bank Rate was increased as expected. Still, traders are waiting for the FOMC Meeting Minutes. This represents a high-impact event. The FED is expected to increase the Federal Funds Rate in the next monetary meetings. This could lift the USD and could push XAU/USD down.

XAU/USD Bearish Pattern Violated!

XAU/USD rebounded and developed a potential flag. The rate found resistance at the 50% retracement level and at the weekly pivot point. It has registered only false breakouts with great separation signaling downside pressure.

Now, it has dropped below the uptrend line and is almost to reach the 1,831 static support. After its strong drop, the rate could test and retest the broken line before extending its sell-off.

XAU/USD Forecast!

A valid breakdown below 1,831 activates more declines and brings new selling opportunities. The S1 (1,817) and the 61.8% retracement level represent the next downside targets if XAU/USD extends its sell-off.