Gold Price Aiming for Fresh Lows Below $1,900 as Dollar Soars

• The bias is bearish as the USD dominates the currency market.
• The channel’s downside line is seen as a potential major target.
• The US data could shake the price later today.

The gold price extended its sell-off as the greenback dominated the currency market. The bias is bearish, so more declines are highly probable.

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Even though the US reported mixed data yesterday, the Dollar Index extended its growth. The CB Consumer Confidence dropped from 108.7 to 103.0 points, far below the 105.5 points expected, while New Home Sales came in at 675K versus 699K expected and compared to 739K in the previous reporting period.

In addition, the Richmond Manufacturing Index, S&P/CS Composite-20 HPI, and HPI reported positive data. Today, the Australian Consumer Price Index reported a 5.2% growth, matching expectations.

The indicator reported higher inflation compared to the 4.9% growth in the previous reporting period. Higher inflation could force the RBA to take action in the upcoming monetary policy meetings.

Later, the US data could move the markets. The Durable Goods Orders may report a 0.5% drop versus a 5.2% drop in the previous reporting period. Core Durable Goods Orders are expected to report a 0.2% growth in August compared to the 0.4% growth in July.

The Fed Chair Powell Speaks, Final GDP and Unemployment Claims should move the rate tomorrow.

Gold Price Technical Analysis: Bearish Impulsive Move

Technically, the XAU/USD dropped within a down channel and is now at $1,896. It accelerated its sell-off after taking out the S1 (1,910) and the descending pitchfork’s median line (ml). It is almost to hit the weekly S2 (1,895), representing a downside target and obstacle.

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Dropping and closing below it may trigger more declines. The channel’s downside line and the historical level of 1,885 represent downside targets.

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• Source: https://www.forexcrunch.com/gold-price-aiming-for-fresh-lows-below-1900-as-dollar-soars/