The price of gold has increased as much as $1,875 level during the day but now is trading in the red at $1,870. Still, the current drop could be only a temporary one if the Dollar Index slips lower in the upcoming days.
XAU/USD has managed to rebound and recover after its last short-term corrective phase. Coming back above 1,862 indicates strong buyers which could lead the price towards the $1,900 psychological level.
XAU/USD In the buyer's territory!
Technically, the Hammer printed on January 18, 2020, signaled a bullish reversal. I've told you in my analyses that a valid breakout above the $1,862 validates more gains and brings a long opportunity.
Gold has managed to close and stabilize above the $1,862 and beyond the median line (ml) of the minor ascending pitchfork confirming the upside scenario. The bullish bias remains intact as long as the price stays above the median line (ml).
Forecast & Tips!
The new higher high, bullish closure above the $1,862 represented a long signal. Technically, XAU/USD will be expected to resume its upside movement as long as it stays above the former higher high and above the median line (ml).
The 1,900 level represents a near-term upside target. Actually, staying within the ascending pitchfork's body could lead the rate towards the upper median line (UML) of the descending pitchfork.
