The price of gold rallied as the USD depreciated versus its rivals. The yellow metal climbed as high as 1,869 today. At the time of writing, XAU/USD was trading at 1,867. In the short term, the bias remains bullish, so further growth is favored.
As you already know, Gold has been rallying since Thursday also because the US data came in worse than expected. Today, the USD took a hit from the US economic data which is good for XAU/USD. The Flash Services PMI was reported at 53.5 points below 55.1 estimates, while the Flash Manufacturing PMI dropped from 59.2 to 57.5 points below 57.6 forecasts.
XAU/USD Up Channel!
Technically, XAU/USD was expected to resume its growth after validating its breakout above the downtrend line. Its failure to come back to test and retest the uptrend line signaled strong buyers.
Also, breaking above the 1,849 - 1,853 resistance area signaled an upside continuation. Now, it challenges the weekly R1 (1,868). Taking out the obstacle may announce a potential growth at least towards the 1,877 key resistance.
Gold Forecast!
Closing and consolidating above the R1 (1,868) could signal a potential breakout above the 1,877 as well. Making a valid breakout above this key level could signal further growth and could bring new long opportunities.
