- The bias is bearish despite temporary rebounds.
- The ECB and the US data should move the rate later.
- The median line (ml) stands as a major downside target.
The gold price is in a downtrend and is trading at $1,906 as of now. It could fall further as the sellers are still strong. I have told you before that the gold price could face more losses in the short term.
-Are you looking for automated trading? Check our detailed guide-
The gold price is under pressure after the US reported higher inflation in August. The monthly and yearly inflation rates were higher than expected, as well as the core inflation rate that excludes food and energy.
Today, we saw some positive data from Australia on employment and unemployment. Later, we will hear from the European Central Bank about its interest rate decision and its monetary policy statement.
The ECB press conference could also have an impact on the market. Moreover, the US will release important data on retail sales, producer prices, and unemployment claims.
These events could move the market significantly. If the US data is positive, the US dollar could rise and weigh the gold price.
Gold price technical analysis:
The gold price is still in a downtrend, trading below the 61.8% Fibonacci level at 1,911. This level shows how far the price has retraced from its previous rally.
-If you are interested in forex day trading then have a read of our guide to getting started-
I have told you that breaking below 1,915 could confirm the continuation of the downtrend. The price has also fallen below the weekly S1 level at 1,907, a support level based on the previous week’s price range.
The sellers are still dominant, so any bounce could be an opportunity to sell. The next targets for the sellers are the weekly S2 level at 1,895 and the median line of the descending channel on the chart. The price could test and retest the resistance levels before dropping further.
Looking to trade forex now? Invest at eToro!
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Automotive / EVs, Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- ChartPrime. Elevate your Trading Game with ChartPrime. Access Here.
- BlockOffsets. Modernizing Environmental Offset Ownership. Access Here.
- Source: https://www.forexcrunch.com/gold-price-in-sellers-territory-ahead-of-us-ppi-ecb/
