GOLD XAUUSD Chart Technical Outlook moves south, bears target $2,020
Gold reacted lower to the falling channel resistance. The USD index (DXY) has printed a higher low this week and is trading north ahead of tomorrow’s PCE data. The 10-year US Treasury yields (US10Y) are confined to a trading range with a broad bullish bias. Gold correlates negatively to both DXY and US10Y. Therefore, I expect a downside price action.
The support zone is between $2,020 and 2,015. If broken, a deeper correction would be expected toward the pivot level of $2,000. Resistances are located at $2,040 and $2,050.
