The price of Gold was traded at 1,833.82 at the time of writing. The yellow metal registered sharp movements in both directions. XAU/USD plunged after the US inflation data was released reaching 1,821.67 which stands as the daily low. After ending its sell-off, Gold climbed as high as 1,841.96.
In the short term, XAU/USD could move sideways before deciding direction. Gold jumped higher as the Dollar Index plunged. As you already know, gold is used as a hedge against inflation. The US reported higher inflation again. The CPI MoM rose by 0.6% versus 0.4% expected, while the Core CPI MoM registered a 0.6% growth compared to 0.5% forecasts. In addition, the US CPI YoY rose by 7.5% versus 7.3% expected.
XAU/USD at resistance
The price of gold challenges the Ascending Pitchfork's median line (ml) and the 1,834.19 static resistance. It has registered only false breakouts above these obstacles. Staying under these levels may signal that XAU/USD could come back down.
Only a valid breakout above the median line (ml) and a new higher high could really activate an upside continuation. Staying near the immediate upside obstacles may signal an imminent breakout. A larger downside movement could be activated only by a bearish closure below 1,821.67.
Gold prediction
A new higher high, a bullish closure above 1,841.96 could activate further growth and could bring new buying opportunities. On the other hand, only false breakouts followed by a new lower low may confirm a sell-off towards 1,800.
