The Gold didn't have enough power to break the swing high at $1.430 and there was strong reaction from sellers, which is sign for me that buyers got very exhausted there. Since there is the fake breakout of the swing high in the background, my focus is on downside. Short-term support levels are set at the price of $1.407 and $1.401.

Industry news:

The diffusion index for current general activity more than recovered from its decline last month, increasing from 0.3 in June to 21.8 this month (see Chart 1). The indexes for current shipments and new orders also improved this month: The current new orders index increased 11 points, while the shipments index increased 8 points.

Technical picture:

On the hourly time-frame I found that there is a bearish divergence on the % Bollinger oscillator, which is sign of the weakness. Also, strong rejection of the resistance at $1.430 is another good sign that sellers are in control and that further downside is possible. Additionally, I found that there is the Bollinger squeeze (narrowing bands range) and the successful breakout of the lower band. My advice is to watch for selling opportunities. The downward targets are set at the price of $1.407 and $1.401.