FX.co ★ Gold extends its range, FOMC minutes decisive

The price of gold turned to the downside after reaching 1,985 today's high. Now, it's trading at 1,963 at the time of writing. As you already know from yesterday's analysis, XAU/USD is moving in a range in the short term, so only a valid breakout from this formation should bring new opportunities.

Today, the most important event is represented by the FOMC Meeting Minutes. This is seen as a high-impact event and most likely will bring sharp movements. Tomorrow, XAU/USD could react aggressively after the US Prelim GDP and Unemployment Claims data.

XAU/USD Undecided!

XAU/USD increased after reaching the median line (ml), but it has registered only a false breakout with great separation above the 1,984 static resistance signaling exhausted buyers and a new sell-off.

It's trapped between 1,984 and 1,952. Now, it could approach and reach the 1,952 static support. After the false breakout above the range's resistance, the price action signaled a potential breakdown from this pattern.

XAU/USD Forecast!

Dropping and closing below 1,952, below the median line (ML), and under the S1 (1,945) is seen as a selling signal. The S2 (1,913) represents a downside target.