Gold Price Favoring Fall Below $1950, Eying CB Consumer Data

• XAU/USD is bearish in the short term after retesting the upper median line (UML).
• In the short term, the yellow metal could move sideways.
• The CB Consumer Confidence should bring sharp movements.

The gold price is trading in the red around $1,956 at the time of writing, far below Friday’s high of $2,003. The precious metal is in downside corrective mode. Surprisingly or not, the XAU/USD turned to the downside even though the US Dollar depreciated in the short term.

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The US Flash Manufacturing PMI and Flash Services PMI came in better than expected, while Durable Goods Orders and Core Durable Goods Orders came in worse than expected.

Today, the US CB Consumer Confidence could be decisive. The economic indicator is expected at 101.0 points versus the 102.9 points estimated. Poor economic data should weaken the greenback and could help the XAU/USD to rebound.

In addition, the Goods Trade Balance could increase from -91.5B to -90.2B. Prelim Wholesale Inventories may report a 0.1% drop, while Richmond Manufacturing Index could climb to -10 points from -16 points.

The Australian CPI could shake the price tomorrow, while the US Final GDP and Unemployment Claims should move the rate on Thursday.

Gold price technical analysis: Ranging above 1950

Technically, the XAU/USD slumped after testing the descending pitchfork’s upper median line (UML). The false breakouts signaled exhausted buyers, and now it could return to 1,935.

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The weekly S1 of 1,938 is also seen as a downside target and obstacle. A larger downside movement could be activated after making a new lower low. In the short term, it’s trapped between the 2,009 and 1,935 levels.

After its strong sell-off, we cannot exclude a rebound. Still, the downside pressure remains high, and the current rebound seems over, so it could approach and reach 1,935 again. From a technical point of view, the price could be attracted by the median line (ML) as long as it stays below the upper median line (UML).

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