FX.co ★ Gold almost to hit 1,896 support

The yellow metal crashed today and now is located at 1,898 at the time of writing. The bias remains bearish as the Dollar Index extended its growth. USD's further appreciation could force XAU/USD to approach and reach new lows.

Gold drops like a rock ahead of the FOMC Meeting Minutes. The US Building Permits came in worse than expected while Housing Starts came in line with expectations. Furthermore, Industrial Production, and Capacity Utilization Rate reported better than expected data.

XAU/USD Trading In The Red!

Technically, the bias remains bearish as long as the price stays below the downtrend line. Its failure to reach and retest it in the last attempts announced strong downside pressure.

Staying near the weekly S1 (1,900) announced an imminent breakdown and continuation. Now, it is almost to reach the 1,896 key downside obstacle.

XAU/USD Outlook!

A bearish closure below 1,896 activates more declines towards the weekly S2 (1,887). This is seen as a selling opportunity.