The price of gold rallied as expected in the short term after testing and retesting the near-term downside obstacles. XAU/USD moves sideways in the short term, so a larger growth needs strong confirmation.
As you already know from my previous analysis, gold could try to come back higher after the US CB Consumer Confidence came in at 95.7 points yesterday far below the 97.3 points expected. Today, the US is to release important economic data as well. The Pending Home Sales, Durable Goods Orders, and the Core Durable Goods Orders could have a significant impact.
XAU/USD rebounded but it remains to see how it will react around the FOMC. The FED is expected to increase the Federal Funds Rate from 1.75% to 2.50%. Gold could register sharp movements during this high-impact event.
XAU/USD Flag Pattern To Be Activated!
Gold registered only false breakdowns below 1,714 and through the weekly pivot point of 1,715. You knew from my last analysis that XAU/USD could develop a new bullish momentum if it stays above these levels.
Now, it challenges the 1,723 level which represents a static resistance. The channel's resistance and 1,728 represent upside obstacles as well. False breakouts above these obstacles could signal a new drop.
XAU/USD Forecast!
In the short term, Gold is trapped between the 1,728 and 1,714 levels. A valid breakout above 1,728 and through the downtrend line activates an upside continuation and could bring long opportunities.
