The price of gold is trading at the 1,915.61 level at the time of writing. The outlook remains bullish, so further growth is somehow natural. Also, the yellow metal is used as a safe haven in the current geopolitical circumstances. Gold is very attractive for buyers, so personally, I'm expecting XAU/USD to climb towards new highs.
Gold was in a corrective phase, but it seems that the retreat ended. Today, the US data came in mixed, that's why the XAU/USD buyers could still push the rate higher. The Chicago PMI dropped from 65.2 to 56.3, far below 62.1 points expected, while the Goods Trade Balance was reported at -107.6B below -99.6B forecasted. Furthermore, the Prelim Wholesale Inventories came in better than expected.
XAU/USD Bullish Bias!
Gold challenges the 1,916.61 upside obstacle. As you can see, the bullish momentums were stopped by this level. A valid breakout above this level could announce further growth. You knew from my previous analyses posted last week that, XAU/USD maintains a bullish bias, it could develop a new leg higher as long as it stays above the uptrend line.
Technically, the retreat seems over. Gold sell-off was somehow expected after reaching the 1,959.40 - 1,965.57 resistance zone and after its strong upwards movement.
XAU/USD Prediction!
As long as it stays above the uptrend line, the bias is bullish. Retesting the uptrend line or making a valid breakout above 1,916 could bring new buying opportunities.
