XAU/USD plunges even if the USD depreciates after better-than-expected US data. Gold maintains a bullish bias as long as it stays above the up trendline. Only a new lower low could open the door for a larger drop. The gold price plunged after reaching $1,974 yesterday. Later, it pared gains, dropped as low as $1,878 where it found strong support. In the short term, it rebounded after such a heavy drop. –Are you interested in learning more about STP brokers? Check our detailed guide- Technically, the throwback was stopped at the $1,916 historical level. At the time of writing, the bias remains bearish. The XAU/USD may test the immediate support level before developing a new leg higher. In my opinion, gold remains very attractive for traders and investors during these geopolitical tensions between Russia and Ukraine. Later today, the XAU/USD may react after the US data release. The Core PCE Price Index reported a 0.5% growth in January, same as in December, Durable Goods Orders rose by 1.6% in January, exceeding the 1.1% growth expected and the 0.7% drop in December, while the Core Durable Goods Orders surged by 0.7% more compared to 0.4% expected. Furthermore, the Personal Income indicator reported a 0.0% raise even if the traders expected a 0.3% drop, while the Personal Spending registered a 2.1% growth, beating the 1.6% growth forecasted. Finally, don’t forget that the Revised UoM Consumer Sentiment and the Pending Home Sales could also bring some action. Get FREE Forex Signals Now! XAU/USD price technical analysis: Corrective phase Gold plunges after the US reported positive economic data earlier. A strong USD could force the yellow metal to drop. As you can see on the 4-hour chart, the XAU/USD found resistance right above the $1,916 static resistance (former high), and now it could come back to test and retest the up trendline. As long as it stays above the uptrend line, the price of gold could start growing again and develop a new leg higher. –Are you interested in learning more about forex robots? Check our detailed guide- Contrarily, a valid breakdown below the uptrend line could announce a larger downside movement. Actually, a new lower low, dropping, and closing below yesterday’s low of $1,878 could activate more declines. 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 Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Commodities share Read Next GBP/USD Weekly Forecast: Ended in Red at 1.34, a Busy Week Lies Ahead Saqib Iqbal 3 months XAU/USD plunges even if the USD depreciates after better-than-expected US data. Gold maintains a bullish bias as long as it stays above the up trendline. Only a new lower low could open the door for a larger drop. The gold price plunged after reaching $1,974 yesterday. Later, it pared gains, dropped as low as $1,878 where it found strong support. In the short term, it rebounded after such a heavy drop. -Are you interested in learning more about STP brokers? Check our detailed guide- Technically, the throwback was stopped at the $1,916 historical level. At the time of writing, the… Regulated 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.