Gold increased as much as 1,951.02 today where it has found resistance. In the short term, it is moving somehow sideways trying to accumulate more bullish energy. The price action signaled exhausted buyers, that's why the XAU/USD could come back to test and retest the immediate support levels before resuming its growth.
Fundamentally, the US is to release high-impact data late today, that's why you have to be careful. The Non-Farm Payrolls, the NFP is expected at 407K in February versus 467K in January, Unemployment Rate may drop from 4.0% to 3.9%, while the Average Hourly Earnings could report a 0.5% growth in February.
XAU/USD Uptrend Intact!
As long as it stays above the uptrend line, the price of gold maintains a bullish bias. It has found temporary resistance at the weekly R1 of 1,949.92. Failing to test and retest the uptrend line may signal strong buyers.
1,959.40 - 1,965.57 represents a major and strong resistance area. The current sideways movement could announce an imminent upside breakout through the near-term resistance levels.
XAU/USD Predictions!
The bias is bullish, so further growth is natural. The 1,916 static support retest followed by a valid breakout above the weekly R1 (1,949.92) may announce more gains and a potential breakout above the major resistance area.
Staying below the R1 may signal a potential drop towards the uptrend line.
