- 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.
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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.
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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.
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