Gold has dropped sharply lower in reaction to the news that the Biden administration is going to implement a lower than expected Capital Gains tax. Bearish MACD price divergence is present across the lower time frame and extends down towards the $1,950 price area. If the negative MACD price divergence is reversed, then the $1,950 level could be a good short-term buy zone in expectation of a rebound.
XAUUSD is only bullish while trading above the $1,880 level, key resistance is found at the $1,890 and the $1,900 levels.
If XAUUSD trades below the $1,880 level, sellers may test the $1,860 and $1,850 support levels.
