The gold price turned to the downside in the short term, but a more extensive correction is far from being confirmed. The metal is trading at $1,983, far below yesterday’s high of $2,007.

Freepik

The yellow metal dropped to $1,975 today, where it found a slight demand again.

The Bank of Japan left the policy rate unchanged in yesterday’s trading session. Still, the US economic data changed sentiment in the short term.

Gold crashed after the US Employment Cost Index, HPI, S&P/CS Composite-20 HPI, and CB Consumer Confidence came in better than expected.

Today, the US economic data should have a significant impact again. The ADP Non-Farm Employment Change is expected at 149K in October versus 89K in September.

ISM Manufacturing PMI could remain at 49.0 points. At the same time, JOLTS Job Openings could drop from 9.61M to 9.34 M.

Furthermore, the ISM Manufacturing Prices, Construction Spending, Final Manufacturing PMI, and Wards Total Vehicle Sales data will also be released. However, the FOMC represents the most important event of the week.

The FED is expected to keep its monetary policy today, but the FOMC Press Conference and FOMC Statement should bring aggressive movements.

Gold price hourly chart

Technically, the price found strong resistance at $2,009, then turned to the downside. The metal has formed a rising wedge pattern.

XAU/USD dropped below the uptrend line and has now found temporary demand on the $1,977 former low. The yellow metal could return higher if it stays above it. The weekly pivot point of $1,989 and the broken uptrend line represent upside obstacles.

Taking out the $1,977 and making a new lower low activates more declines and activates the Rising Wedge formation.

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