- The bias remains bearish as long as it stays below the lower median line (lml).
- 1,809 is seen as a major target.
- The US economic figures could shake the price later today.
The gold price rebounded after reaching today’s low of $1,815. Now, the metal is trading at $1,825 at the time of writing. The downside pressure remains high. It shows that more declines could be expected despite corrective upsides.
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The US dollar’s upside “exceptionalism” forced the yellow metal to extend the bearish momentum far below the key levels.
Fundamentally, the XAU/USD took a hit from the US data yesterday. The ISM Manufacturing PMI came in at 49.0, above the 47.8 expected, while the Final Manufacturing PMI jumped from 48.9 points to 49.8 points.
Also, Fed Chair Powell’s remarks pushed the yellow metal to new lows. Today, the Reserve Bank of Australia maintained the Cash Rate at 4.10% as expected.
Gold also ticked higher because the Switzerland CPI reported a 0.1% drop versus the 0.0% growth estimated after the 0.2% growth in the previous reporting period.
Later, the US data could bring life to the XAU/USD. JOLTS Job Openings are expected at 8.81M in August versus 8.83M in July. Wards Total Vehicle Sales could be reported at 15.4M compared to 15.0M in August, while IBD/TIPP Economic Optimism could drop to 41.6 points.
Tomorrow, the RBNZ and the US ADP Non-Farm Employment Change, ISM Services PMI, and Factory Orders should move the rate.
Gold Price Technical Analysis: Bears Looking for $1,809
The XAU/USD extended its sell-off after registering a false breakout through the median line (ml) of the descending pitchfork on Friday.
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The flag pattern broke and triggered a strong downside continuation. It has dropped below the lower median line (LML), representing a downside target, and under the weekly S1 (1,821). It has rebounded and challenged the lower median line (LML) again.
This stands as a dynamic resistance (support turned into resistance). As long as it stays below it, the bias remains bearish. 1,809 historical level is seen as a major target if the rate continues to drop.
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