10.10.2022 05:14 PM
Gold attracted by median line

The price of gold crashes as the USD is strongly bullish. The yellow metal was trading at 1,668 at the time of writing and it seems determined to approach and reach new lows. Fundamentally, XAU/USD developed a strong sell-off after the US NFP was reported at 263K in September while the Unemployment Rate dropped unexpectedly from 3.7% to 3.5%.

XAU/USD plunges also after Germany announced that it would back joint EU debt for loans to tackle the energy crisis. The bias is bearish, so more declines are in cards. Only the FOMC Meeting Minutes or the US inflation could change the sentiment during the week.

Better-than-expected US data could boost the greenback and could force the price of gold to drop deeper.

XAU/USD Massive Drop!

This image is no longer relevant

Technically, the rate failed to stabilize above the major downtrend line signaling that the leg higher could be over. Retesting the descending pitchfork's upper median line (uml) and dropping below the uptrend line signaled a potential sell-off.

Breaking below 1,688 - 1,680 activated more declines. The next downside target is seen at 1,659. After retesting the upper median line (uml), the yellow metal could be attracted by the median line (ml) which represents a potential target and dynamic support.

XAU/USD Forecast!

The breakdown below 1,680 was seen as a selling opportunity. A larger drop could be activated if the rate makes a valid breakdown below the median line (ml). So, dropping, closing, and stabilizing below S1 (1,659) and below the median line (ml) could bring short opportunities as well.

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 always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In June we raffle $1000 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.
  • 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.
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
  • 30% Bonus
    Receive a 30% bonus every time you top up your account

Recommended Stories

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