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Gold crashes as USD rallies

The price of Gold is trading in the red at 1,851.93 at the time of writing far below 1,862 today's high. It has dropped by 0.56% from today's high and it seems very heavy after failing to confirm an upside continuation.

The yellow metal is dropping like a rock as the Dollar Index has managed to rebound after its last sell-off. USD's appreciation forces XAU/USD to drop. Fundamentally, the US data came in mixed, Core PCE Price Index rose by 0.3% matching expectations, the Goods Trade Balance came in at -105.9B versus -114.8B estimates, while the Revised UoM Consumer Sentiment dropped unexpectedly from 59.1 to 58.4 points. In addition, Personal Income came in worse than expected, while Personal Spending reported better than expected data.

XAU/USD Uptrend Line Retest!

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Gold crashes as USD rallies

XAU/USD rebounded after failing to take out the 1,841 support. Now, it has tested and retested the broken uptrend line signaling that we may still have a larger drop. As you can see on the H4 chart, the price registered only false breakouts with great separation signaling exhausted buyers.

Failing to stay above 1,853 may signal a potential sell-off towards the 1,841 key support. In my opinion, an upside continuation could be signaled by a new higher high, if the price jumps and closes above 1,862.

Gold Forecast!

A larger drop and a new selling opportunity could be confirmed by a valid breakdown below 1,841. So, only a new lower low could activate a larger drop and could help the sellers to catch new short opportunities.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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