Gold broke below key support

After the release of the US GDP data, we see a continuation of gold sell-off, even when little is happening on EURUSD. Nevertheless, the data on inflation from the GDP report indicate that it is a fact and not a temporary factor as the Fed claims. This in turn leads to a slight increase in bond yields, which are the highest since April 13.

Regarding gold, it is worth noting that the precious metal has not formed a new higher high in the recent time. After breaking below the upward trend line, the key support of $ 1,762 per ounce was tested. Later, the price of gold rose, and it tested the resistance at $1790 and the trend line from the bottom. A moment ago, the price of gold broke below the aforementioned support at $1762, which is determined by the lower limit of the overbalance structure. A breach of this level could push gold price towards support at $1755 an ounce, or even near the 38.2 retracement of the recent downturn wave. Should a break below $ 1,755 occur, then it will wipe out the prospects for a double-hole formation with a range of up to $ 1,833 an ounce.

Source: xStation5