Gold is moving sideways in the short term. It has developed a range pattern, escaping from this formation could bring new trading opportunities. It is trading at 1,952 at the time of writing.
Today, the US, UK, and Euro-zone manufacturing and services data could bring strong volatility to Gold. The US Flash Manufacturing PMI is expected at 58.1 versus 58.8 in the previous reporting period, while the Flash Services PMI could remain steady at 58.0.
XAU/USD Exist Its Range Soon?
In the short term, XAU/USD rebounded after registering only a false breakout below 1,939 former low. The price is trapped between 1,939 and 1,958. As you can see on the H1 chart, gold is in a corrective phase.
After dropping below the uptrend line, gold was expected to extend its drop but the sellers were exhausted. Now, the price may reach and retest the uptrend line and the 1,958 static resistance.
XAU/USD Outlook
False breakouts above the uptrend line and through the 1,958 may signal a new sell-off. A new lower low, a valid breakdown below 1,939 could activate a larger drop and could bring new short opportunities.
On the other hand, making a valid breakout above the 1,958 may signal that the downside movement is over and that the rate could continue to grow.
