Gold dropped in the short term but this could be only a temporary one. The rate retests the immediate support levels before jumping higher again. The outlook is bullish, so it could resume its growth anytime again.
The yellow metal has decreased a little as the US Dollar Index has rebounded. Still, the pressure remains high on the DXY (USDX). A further drop registered by the DXY could help the price of gold to increase again.
The US is to release the inflation data on Thursday, so Gold is used as a hedge for inflation. That's why we can expect further growth registered by the yellow metal.
Gold Upside Continuation!
Gold dropped after failing to stabilize above the 1,900 psychological level in the last attempt. Now is retesting the ascending pitchfork's median line (ml) which is seen as a support level. Staying above it and registering a valid breakout above 1,900 could really announce further growth.
The precious metal has retested 1,890.14 level static support as well, and the confluence area created at the intersection between the median line with this static support.
Forecast!
A bullish closure above 1,903.38 today's high could bring a good buying opportunity with potential upside targets at 1,920, 1,930, and 1,940.
