Gold plunged after failing to reach and retest the immediate resistance level, the downtrend line. Now is located in a support zone. Making a new lower low may activate further declines. It seems surprising but the yellow metal plunged even if the USD has depreciated versus its rivals.
XAG/USD is located at 1,750.72 far below 1,787.32 yesterday's high. The price dropped aggressively after the hawkish FED. Gold is located deep in the seller's territory, so it's premature to talk about potential strong growth.
Gold failed to stabilize above the weekly pivot point (1,769.76) so a drop towards the S1 (1,730.75) is possible. Still, right now is located around 1,750.74 static support and above the former lows.
As long as it stays below the ascending pitchfork's median line (ML), Gold could drop deeper. Testing and retesting the median line could bring new bearish opportunities. Technically, only a valid breakout above the downtrend line may announce a strong upwards movement.
Staying above 1,750 and jumping above the downtrend line is seen as a long opportunity with a potential target at 1,834. On the other hand, dropping and closing below 1,742.08 lower low may signal further downside movement towards the next obstacles.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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