- The bias remains bearish in the short term.
- A new lower low activates more declines.
- The US economic figures and the Canadian GDP should bring sharp movements.
The gold price is trading at $1,948 at the time of writing. The metal remains under strong selling pressure after the US reported better-than-expected data yesterday.
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Gold dropped by 2.00% from $1,982 yesterday’s high to a $1,942 new low. The yellow metal crashed as the US Advance GDP reported a 2.4% growth versus the 1.8% growth expected and compared to the 2.0% growth forecasted. At the same time, Unemployment Claims came in at 221K versus 234K estimated.
In addition, the US Pending Home Sales, Goods Trade Balance, Prelim Wholesale Inventories, Durable Goods Orders, and Core Durable Goods Orders also reported positive data.
Today, the BOJ decided to keep the BOJ Policy Rate at -0.10%, matching expectations. Later, the US and Canadian economic data could be decisive.
The US will release the Revised UoM Consumer Sentiment, Employment Cost, Core PCE Price Index, Personal Income, and Personal Spending, while Canada publishes the GDP.
Gold Price Technical Analysis: Strong Selling Pressure
Technically, the XAU/USD plunged after failing to reach the weekly R1 (1,984) and the upper median line (uml). The price ignored the weekly pivot point of 1,965 and the median line (ml).
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It has found support on the weekly S1 (1,942), right below the $1,945 downside obstacle. After its massive sell-off, a rebound was natural. The metal failed to retest the median line (ml), indicating a strong bearish pressure. Still, only a new lower low, a valid breakdown below the S1 (1,942), could announce more declines.
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