Gold is moving within a downward correction on Wednesday, falling below 2,300 USD per troy ounce.
XAUUSD is declining within a correction; US GDP data may influence price dynamics
Gold remained in a downward correction on Wednesday, briefly dropping below the 2,300 USD per troy ounce mark. The decline in gold prices is driven by the overall strengthening of the US dollar against major world currencies.
The XAUUSD quotes are currently trading slightly above 2,300, with market participants focusing on today’s release of updated US Q1 GDP growth data during the American session. If the figures significantly differ from the forecast, increased volatility in the instrument can be expected.
XAUUSD technical analysis
On the H4 chart, gold prices continue to correct within the descending price channel. After securing below the 2,317 support level, the quotes reached the 2,300 mark, where they are consolidating. Bears dominate the market in the short term, likely pushing prices lower.
The short-term forecast suggests that if the price does not reverse sharply upwards from the 2,300 level, the next decline target for XAUUSD quotes will be the strong support area from 2,286 to 2,277. Bulls may attempt to seize the initiative here and reverse the price upwards.
Summary
Gold continues to trade in a downward correction, pressured by the strengthening US dollar against major world currencies. The upcoming release of updated US GDP Q1 data during the American session may drive further movement in XAUUSD.
