Gold is nearing strong downside obstacles, a bullish pattern could signal a new leg higher. XAU/USD could turn to the upside if the Dollar Index slips lower after its rally. A larger drop could be activated by a valid breakdown below the uptrend line. Our gold forecast notes that the yellow metal plunged after failing to make a valid breakout above 1868.62 static resistance. XAU dropped as the US Dollar has registered a strong appreciation versus its rivals. DXY’s further growth could force the XAU/USD to drop deeper in the short term. Still, technically, after the current sell-off, the price of gold could try to rebound. Gold is traded at 1780.81 at the time of writing and is almost to reach a dynamic support, a downside obstacle which could stop the bearish momentum. Get FREE Forex Signals Now! 3 Free Forex Every Week – Full Technical Analysis Today, the US economic data came in mixed, it remains to see how the Dollar Index will react after today’s strong rally. The Prelim GDP reported a 2.1% growth in Q3 versus 2.2% expected and compared to 2.0% in Q2, while the Core PCE Price Index registered a 0.4% growth matching expectations. As long as the USD is bullish, Gold could approach and reach new lows. If you are looking for good CFD brokers then read our review of top investment platforms to help you decide on your pick. USD received a helping hand from the Unemployment Claims indicator which registered an unexpected drop from 270K to 199K in the previous week, far below 259K expected, while the Revised UoM Consumer Sentiment climbed from 66.8 to 67.4 points, even if the specialists have expected the indicator to remain steady at 66.8 points. Furthermore, the Goods Trade Balance, Prelim GDP Price Index, Personal Income, and the Personal Spending have come in better than expected as well. Gold Forecast: Price Technical Analysis – Confluence Area  XAU/USD could hit the descending pitchfork’s median line (ML) which could represent a dynamic support. Also, the uptrend line could stop the downside movement. The confluence area formed at the intersection between these dynamic support levels could bring new opportunities if the rate reaches it. From the technical point of view, Gold is traded above a demand zone. So, a bullish pattern here could signal a new leg higher. This scenario could take shape if the Dollar Index retreats after its amazing rally. In the short term, we cannot exclude a temporary correction registered by the DXY. The index could be too overbought to be able to climb higher. Later today, the FOMC Meeting Minutes could be decisive. A dovish report could boost the XAU/USD. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Olimpiu Tuns Olimpiu Tuns Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms. View All Post By Olimpiu Tuns CommoditiesDaily Look share Read Next Gold Forecast: Bounces off Support, Capped by $1,800 Saqib Iqbal 5 months Gold is nearing strong downside obstacles, a bullish pattern could signal a new leg higher. XAU/USD could turn to the upside if the Dollar Index slips lower after its rally. A larger drop could be activated by a valid breakdown below the uptrend line. Our gold forecast notes that the yellow metal plunged after failing to make a valid breakout above 1868.62 static resistance. XAU dropped as the US Dollar has registered a strong appreciation versus its rivals. DXY’s further growth could force the XAU/USD to drop deeper in the short term. Still, technically, after the current sell-off, the price… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.