The price of gold plunged and now it stands at 1,763.43. It has rebounded in the last hours after dropping as much as 1,750.75 today. It has dropped also because the US Dollar Index has rallied.
It has found support again and now is trying to recover. Unfortunately, the pressure remains high despite the current bounce back. DXY's further growth could push XAU/USD lower. You should be careful these days as the US is to release high-impact data during the week.
These events could have a big impact on gold. Some poor economic figures could really bring a new leg higher.
XAU/USD Found Support Again!
Gold has found support below the upper median line (UML) again. Stabilizing above this dynamic support could indicate more gains.
Technically, escaping from the triangle pattern and making a new lower low signal that XAU/USD is vulnerable to slide further.
Outlook!
Staying below the S1 (1,765.44) and dropping below 1,750.74 today's low could really activate a larger drop, 1,700 is seen as a major downside target.
The material has been provided by InstaForex Company - www.instaforex.com