FX.co ★ Gold: downside scenario takes shape

The price of gold dropped again after reaching 1,957 today's high. Now, it's trading at 1,942 at the time of writing and it seems determined to approach and reach new lows. The bias remains bearish despite temporary rebounds. DXY's further growth forced XAU/USD to turn to the downside again

Fundamentally, the US data came in mixed today. Core PCE Price Index, Durable Goods Orders, Personal Spending, Prelim Wholesale Inventories, and revised UoM Consumer Sentiment came in better than expected, boosting the greenback.

XAU/USD Strong Downside Pressure!

As you can see on the H1 chart, XAU/USD retested the 1,952 range's support and now is trading below the median line (ML) again. It is challenging the 1,939 critical downside obstacle.

You knew from yesterday's analysis that Gold could register only a temporary rebound after escaping from the downside continuation pattern (range).

XAU/USD Forecast!

Stabilizing below the median line (ML) may announce more declines. A bearish closure below 1,939 represents a selling signal.