The price of gold rallied after registering only a false breakdown below the 1,877 key level. XAU/USD is trading in the green at 1,908 at the time of writing and it seems determined to take out the immediate resistance levels. Gold increased by 1.94% from yesterday's low of 1,872.
Fundamentally, the yellow metal rallied and extended its rebound after the US Advance GDP reported a 1.4% drop in Q1 even if the specialists expected a 1.1% growth. Today, the US Core PCE Price Index is seen as a high-impact event. The economic indicator is expected to report a 0.3% growth, while the Revised UoM Consumer Sentiment could increase from 65.7 to 65.8 points. In addition, Personal Spending is expected to report a 0.7% growth, while Personal Income could register a 0.4% growth.
XAU/USD Swing Higher In Play!
XAU/USD rebounded after retesting the down channel's downside line. Now, it has escaped from this pattern and it seems strongly bullish. Its breakout above 1,890 and above the median line (ml) of the minor ascending pitchfork signaled potential larger growth.
Now, it challenges the median line (ML) of the major descending pitchfork, the 1,911 former high, and the upper median line (uml) of the ascending pitchfork. It remains to see how it will react around these upside obstacles.
Gold Forecast!
After its massive drop, a rebound was somehow expected. Registering a valid breakout above the 1,911 and through the ascending pitchfork's upper median line (uml) could activate potential larger growth. Strong consolidation above these resistance levels could bring new buying opportunities.
False breakouts above the mentioned upside obstacles could announce that the rebound ended and that the XAU/USD could come back down.
