FX.co ★ Gold sell-off stopped by 1,902

The price of gold changed little in the short term even if the USD extended its growth. It's trading at 1,904 at the time of writing, above 1,902 yesterday's low. The downside pressure is high, so XAU/USD could drop deeper despite temporary rebounds. Actually, a minor increase could bring us new selling opportunities.

Fundamentally, the US data could be decisive today. The Final GDP may report a 1.4% growth versus the 1.3% growth in the previous reporting period, Unemployment Claims and Final GDP Price Index could remain unchanged, while Pending Home Sales is expected to report a 0.5% drop. In addition, the German Prelim CPI could be released as well today and could have a big impact as well.

XAU/USD Rebound Favored!

As you can see on the H1 chart, the rate retested the broken 1,910 support and now it stands right above the 1,902 former low. This represents a downside obstacle. In addition, the weekly S1 (1,901) represents a static support as well.

False breakdowns below the immediate support levels may announce a potential bounce back. Still, you already know from my analyses that the bias remains bearish as long as it stays below the median line (ml).

XAU/USD Forecast!

A bearish closure below the S1 (1,901) opens the door for a downside continuation. This is seen as a bearish signal with the next target at the S2 (1,881).