FX.co ★ Gold: downtrend intact

Gold 1,904 Downside Obstacle!

The price of gold dropped as much as 1,902 today where it has found strong demand again. Now, it's located at 1,908 at the time of writing. Failing to stay below the former low signaled exhausted sellers and announce a potential growth at least towards the downtrend line.

Technically, the downtrend line represents an upside obstacle. As long as it stays below the, the price of gold could drop again. Also, the former high of 1,914 stands as an upside obstacle as well.

XAU/USD Trading Conclusion!

Staying below the downtrend line and dropping again below 1,904 downside obstacle, making a new low activates more declines.