XAU/USD is trading in the green at 1,933 at the time of writing. In the short term, it moves sideways, that's why is really hard to catch a good trading opportunity. Still, the price action signaled that the downside is limited and that Gold could try to come back higher.
XAU/USD could register sharp movements around the RBA tomorrow. The Reserve Bank of Australia is expected to keep its Cash Rate unchanged at 0.10%. Also, the US ISM Services PMI could jump from 56.5 to 58.6 points.
Today, the US Factory Orders reported a 0.5% drop in February matching expectations, versus a 1.5% growth in January.
XAU/USD Upside Pressure!
XAU/USD found support on the 1,916.61 level and now is trading at 1,930. It has retested the weekly pivot point of 1,924 and now it seems determined to come back higher. Actually, the rate could continue to move sideways in the short term.
It is trapped between 1,895 and 1,965 levels. Technically, the bullish engulfing developed on the support levels may signal upside pressure.
Gold Forecast!
As long as it stays above the 1,924 weekly pivot point, the yellow metal could try to come back higher. The retreat was only a temporary one after the last swing higher. Jumping and closing above 1,936.94 today's high could activate an upside continuation and could bring long opportunities.
