The price of gold dropped in the last hours but the bias remains bullish in the short term. XAU/USD could only test and retest the immediate support levels before resuming its growth. The yellow metal is trading at 1,968 at the time of writing below 1,978 today's high.
XAU/USD resumed its growth after the US inflation data. As you already know, the US Consumer Price Index registered a 1.2% growth in March matching expectations, versus 0.8% growth in the previous reporting period. In addition, the Core CPI rose by 0.3% less versus 0.5% expected.
XAU/USD Bullish Bias!
In the short term, XAU/USD retreated and now it retests the 1,966 broken resistance. Staying above this level may signal an upside continuation. As you already know from my previous analysis, the price of gold could approach and reach new highs as long as it stays above the ascending pitchfork's lower median line (lml).
The median line (ml) acts as a magnet, so it could attract the price after testing and retesting the lower median line (lml).
XAU/USD Outlook!
A minor accumulation above the 1,966 broken resistance could signal further growth at least towards the median line and up to the 2,000 psychological level. This scenario could bring new buying opportunities.
Also, coming back to test and retest the 1,949 and the lower median line (lml) could bring long signals.
