Gold plunged from the 1903.93 today’s high and now is traded at 1893.49 level. DXY’s temporary rebound forced the rate to decline in the short term. Unfortunately, the US Trade Balance data pushed the yellow metal down.
The price of gold is still bullish despite today’s drop. It could jump higher if the US data is disappointing these days. Technically, XAU/USD has shown some overbought signals, but it’s still premature to go short.
Technical Analysis!
XAU/USD failed to stabilize above the 1900 psychological level signaling some pressure in the short term. Now it is trapped below the 1903.93 and 1883.78 levels. It could move sideways between these levels before really deciding direction.
Coming back above the 1,900 and registering a new higher high could announce a potential growth towards fresh new highs. On the other hand, a new lower low, a drop below 1883.78 could confirm a deeper decline.
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