The price of gold climbed as high as 1,871.02 today where it has found strong resistance. It was traded at 1,861 at the time of writing. XAU/USD is melting down as the Dollar Index is fighting hard to resume its upwards movement.
As you already know, Gold rallied after the United States inflation came in higher than expected on Thursday. Still, after its amazing rally, a temporary decline is somehow expected. Tomorrow, the Australian Monetary Policy Meeting Minutes and the US PPI and Core PPI could bring strong action.
Fundamentally, the Canadian inflation data and the US retail sales could be decisive on Wednesday.
XAU/USD targets 1,877 higher high
The XAU/USD rallied after ignoring the level of 1,834.19 and the ascending pitchfork's median line (ml). The next upside target is represented by the 1,877.14 higher high. Actually, after passing above the median line, the rate could be attracted by the upper median line (uml).
After such an important growth, personally, I'll wait for a temporary decline before I will look for new buying opportunities.
XAU/USD outlook
Gold is bullish in the short term. Only a temporary decline towards 1,850 could bring new buying opportunities. Resuming its growth and making a valid breakout above the upper median line (uml) and through 1,877 validates an upside continuation.
Registering only false breakouts above these levels may signal a short-term sell-off and could bring intraday short opportunities.
