The price of Gold was traded at 1,853 at the time of writing. In the short term, the bias remains bearish but don't forget that the retreat could be only a temporary one. XAU/USD is in a corrective phase after registering a strong leg higher.
In the short term, it could test and retest the immediate support levels before developing a new swing higher. XAU/USD could slip lower if the USD appreciates versus its rivals. Fundamentally, the US PPI rose by 1.0% versus 0.5% expected, while the Core PPI registered a 0.8% growth compared to 0.5% estimates.
Tomorrow, the volatility could be high around the UK and Canadian inflation data and after the US retail sales figures publication.
XAU/USD exhausted sellers
As you can see on the h4 chart, the yellow metal found resistance at the ascending pitchfork's upper median line (uml), right above 1,877 former high. You already know from my analysis that the XAU/USD could find a strong supply after reaching these levels.
If you remember, I've told you that false breakouts could announce a short-term sell-off. I've also told you that the temporary retreat could bring new buying opportunities.
XAU/USD prediction
Gold could still reach the weekly pivot point of 1,844 and retest the ascending pitchfork's median line (ml). False breakdowns below these downside obstacles or a strong bullish pattern could bring new buying opportunities.
As long as it stays above the median line (ml), XAU/USD could give birth to a new leg higher.
