FX.co ★ Gold rising wedge violated

The yellow metal is trading in the red at 1,930 at the time of writing, and it seems very heavy as the USD recovered versus its rivals. The Dollar Index's further growth should force the XAU/USD to drop deeper in the short term.

Fundamentally, Gold turned to the downside after the Canadian and US data. Surprisingly, the Canadian CPI reported a 0.4% growth, beating the 0.2% growth. So, higher inflation could force the BOC to take action, that's why the XAU/USD slipped lower. Tomorrow, the UK inflation data and the FOMC should be decisive.

XAU/USD 1,929 key support

Technically, the XAU/USD forecast found resistance at the R1 (1,936) and now it has dropped below the uptrend line.

The rate escaped from a Rising Wedge pattern, but a deeper drop is far from being confirmed.

XAU/USD outlook

Dropping and closing below the 1,929 is seen as a short opportunity.