- The price of Gold moves sideways within a range, a valid breakout could bring a clear direction.
- XAU/USD seems under pressure after failing to reach the former high.
- Gold could develop a bullish reversal only if it stays above the downtrend line.
In our gold forecast we note that price has plunged in the short term and now stands at 1,789.49 at the time of writing.
Technically, it seems undecided as the rate moves somehow sideways, it’s trapped within a range pattern. The United States economic data released earlier brought high volatility. You should be careful as the US is to release more economic data which could have a big impact on the XAU/USD.
In the short term, the bias is still bullish, but we need strong confirmation before taking action. Anything could happen as the rate stands above a critical support zone.
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The US Core PCE Price Index registered a 0.2% growth as expected, this was seen as a high-impact event. In addition, the Employment Cost Index rose by 1.3% beating 0.9% growth expected, Personal Income dropped by 1.0% more compared to 0.2% expected, while the Personal Spending registered a 0.6% growth matching expectations.
Later, the Chicago PMI could drop from 64.7 to 63.6 points, while the Revised UoM Consumer Sentiment is expected to remain steady at 71.4 points.
Gold Forecast: XAU/USD Price Technical Analysis – Range Pattern!
Gold moves sideways between 1,810.07 and 1,782.88 levels. Escaping from this range could bring us a clear direction. Support is also seen at the downtrend line and at the inside sliding line (sl) of the ascending pitchfork.
Making a valid breakdown below all these levels could announce a potential deeper drop. Failing to stay above the downtrend line could signal a sell-off.
On the other hand, stabilizing above the downtrend line, registering only false breakdowns below the immediate support levels could signal an upside reversal. Technically, the inside sliding line (sl) of the ascending pitchfork stands as a dynamic support. Dropping and stabilizing below it may indicate that the upwards movement is over.
In the short term, its failure to make a new higher high, or at least to reach 1,813.84 high signalled exhausted buyers.
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