Gold is dropping at the time of writing after reaching a new upside obstacle. Still, the decline could be only a temporary one before resuming the upwards movement.
The yellow metal drops as the USD starts to appreciate versus its rivals. XAU/USD could test and retest the immediate downside obstacles before jump higher. The US Core PPI, PPI, and the Final Wholesale Inventories could bring more volatility later today.
XAU/USD Slips Lower!
Gold is losing ground. having reached 1,755 static resistance and now is trading back below the ascending pitchfork's median line (ml). Closing below the weekly R1 and under the daily pivot point (1,749) could signal a temporary decline towards the daily S1 (1,739).
As you already know from my analysis, the price of gold will develop a broader upwards movement if the makes a valid breakout above 1,755.
XAG/USD Outlook!
We may have a good long opportunity if the rate jumps and closes above 1,758 former high with a first upside target at 1,800.
The material has been provided by InstaForex Company - www.instaforex.com