• The bias remains bullish despite the current retreat.
• The US manufacturing and services data should be decisive.
• Taking out the immediate obstacles activates further drop.

Freepik

The price of gold faced a loss in the last hours. The precious metal is trading at $1,967 at the time of writing. The bias remains bullish despite the current correction.

Today, the fundamentals will be driving the markets. The Eurozone Flash Manufacturing PMI and Flash Services PMI reported further contraction. Surprisingly, the German Flash Services PMI dropped from 50.3 points to 48.0 points, far below 50.1 expected confirming contraction.

Furthermore, the German Flash Manufacturing PMI, the French Flash Manufacturing PMI, and the French Flash Services PMI remained deep in the contraction territory as well.
Later, the US data should be decisive. The Flash Manufacturing PMI is expected at 49.5 points versus 49.8 points in the previous reporting period, signaling further contraction, while the Flash Services PMI may drop from 50.1 points to 49.9 points indicating contraction again.

Poor US data should weaken the greenback. This scenario could lift the yellow metal. Gold could register a larger drop only if the US reported positive data. In addition, the Richmond Manufacturing Index will be released as well.

Gold Price Technical Analysis: Uptrend Intact

Gold price hourly chart

As you can see on the hourly chart, the gold price found strong resistance at the channel’s upside line before turning to the downside. The breakout through $1,987 static resistance was invalidated, signaling exhausted buyers.

Now, it challenges the uptrend line which represents a dynamic support. Furthermore, the former low of 1,964 and the weekly pivot point of 1,962 represent static downside obstacles. Taking out the immediate support levels should open the door for more declines. On the contrary, false breakdowns could precede a new bullish momentum.

More By This Author:

EUR/USD Weekly Forecast: Bets For Fed’s Dec Hike Diminish
USD/CAD Outlook: Dollar Edges Higher with 0.3% Weekly Loss
Gold Price Tops Near Major Resistance After Fed Speech