At the moment of writing, gold was dropping. It seemed determined to resume its downside movement. The level of 1,784.57 is seen as a support level, a downside obstacle. I've mentioned in a previous analysis that XAU/USD could register a broader downside movement if it drops below 1,784.57 former low.
In the short term, it has increased a little but it has failed to stabilize above the 1,800 psychological level signaling strong sellers. Its failure to register an important rebound may signal a potential larger drop.
Trading Conclusion
Gold may extend its drop if it falls below 1,784 - 1,780 area and after stabilizing under these downside obstacles.
The material has been provided by InstaForex Company - www.instaforex.com