Gold stands at 1,734 level at the time of writing and it could reach new highs in the coming hours. It has changed little since the start of the week, maybe is waiting for the USDX to give us a clear direction. The yellow metal continues to be undecided despite some poor US data reported earlier. Personally, I've expected a bullish momentum.
Fundamentally, the price of gold could resume its short-term growth after the US retail sales indicators reported negative data in February. Still, the traders are waiting for the FOMC meeting on Wednesday before forcing the price to register sharp movements.
XAU/USD Temporary Rebound?
Gold is traded higher near the inside sliding line (SL) of the descending pitchfork which represents a dynamic resistance (support turned into resistance). The price has turned to the upside without reaching the descending pitchfork's lower median line (LML) as the US Dollar has depreciated versus its rivals.
XAU/USD may drop again if the USDX jumps higher again after FOMC. On the other hand, USDX's deeper drop could push the gold price way higher. Technically, a false breakout with great separation above the sliding line (SL), R1 (1,752), or through the median line (ML) could signal new bearish momentum.
Actually, any reversal pattern here around the immediate resistance levels could bring a short opportunity.
Gold Forecast!
A false breakout, bearish engulfing, or any other reversal pattern printed around the SL, R1, ML could offer a selling opportunity.
Gold could register an important growth only if the rate jumps and stabilizes above the descending pitchfork's median line (ML), 1,760.
