The price of gold increased as much as 1,970 where it has found resistance. Now, it's trading at the 1,946 level at the time of writing. Despite the massive drop, the yellow metal could try to recover after its massive drop.
Tomorrow, the US is to release its inflation data. The Consumer Price Index could report a 1.2% growth in March versus 0.8% in February, while the Core CPI is expected to register a 0.5% growth. The economic figures are seen as high impact, so the volatility could be high.
XAU/USD 1,966 Stopped The Upside!
XAU/USD rallied after testing and retesting the ascending pitchfork's lower median line (lml). It has climbed as much as 1,970 where it has found resistance. The yellow metal was rejected by the weekly R2, registering only a false breakout above the 1,966 static resistance.
Now, it was almost to reach the lower median line (lml) again. This represents dynamic support. As long as it stays above it, Gold could start increasing again. A valid breakdown below this dynamic support could signal a potential larger drop.
XAU/USD Forecast!
Retesting the lower median line (lml), or registering only false breakdowns below it may announce a new potential bullish momentum. A larger upwards movement could be signaled only by a valid breakout above the 1,966. This scenario could bring new long opportunities.
