Gold rallied and now is trading at 1,871 at the time of writing. The yellow metal rallied also because the Dollar Index drops. Still, it remains to see how the XAU/USD will react after reaching the immediate strong resistance levels.
Fundamentally, the price of gold was boosted by geopolitical tensions and by inflationary pressure. The Canadian Consumer Price index rose by 0.9% versus 0.6% expected, while the Core CPI registered a 0.8% growth. Surprisingly or not, the USD depreciated even if the US data came in better than expected, XAU/USD taken advantage of this situation.
XAU/USD Aims At 1,877!
Gold plunged after finding resistance at 1,877 and on the upper median line (uml). It has failed to reach the weekly pivot point (1,844) or the median line (ml) announcing strong buyers.
XAU/USD is strongly bullish but it remains to see how it will react after reaching the resistance levels. Technically, after its amazing rally, a temporary retreat could be natural. Also, don't forget that the price could react after the FOMC Meeting Minutes.
XAU/USD Prediction!
A larger upwards movement, a broader growth could be activated by a valid breakout above the ascending pitchfork's upper median line (uml). Still, failing to reach the resistance levels or registering only false breakouts could announce a new sell-off. The upside pressure is high after failing to reach the support levels, so an upside breakout is favored.
