The price of gold is trading at the $1,956 level and is expected to climb higher in the short term after taking out another upside obstacle. I've told you in my previous analyses that XAU/USD has ended its corrective phase and now it should come back higher.
Gold edges higher also due to USD's further depreciation versus all its rivals. The US ADP Non-Farm Employment Change is expected at 60K in December, far below 307K in November.
Dovish FOMC Meeting Minutes could boost the gold price tonight. Also, poor US data could help the price to reach new highs.
XAU/USD Targeting The $2,000 Psychological Level!
XAU/USD has passed through the first warning line of the descending pitchfork signaling more gains. The rate has retested the R3 ($1,941) static resistance validating a new bullish momentum.
As you already know from my analysis, Gold is expected to reach the $2,000 psychological level after returning above the $1,900 level. Closing above the $1,955 intraday high suggests strong buyers and further increase.
XAU/USD Trading Tips
Buy Gold if the rate closes above the $1,955 level on the H4 chart. The $2,000 psychological level could be used as the next upside target.
