empty
 
 
27.05.2022 06:09 PM
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!

This image is no longer relevant

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.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback