The price of gold climbed as high as 1,741 today where it has found resistance. Now, it is traded lower at 1,736. After its amazing rally, the yellow metal could retreat a little. USD's depreciation after the FOMC helped XAU/USD to extend its growth.
Today, US data could have a big impact on the price of Gold. The first estimate of GDP is expected to log a 0.4% growth in Q2 2022 versus a 1.6% drop in the previous quarter, while the preliminary GDP Price Index is expected to register a 7.9% growth. In addition, the Unemployment Claims could jump from 251K to 253K in the previous week.
XAU/USD Amazing Rally!
Technically, XAU/USD rallied after finding support on the weekly pivot point of 1,715 and on the 1,714 former low. It has registered only false breakdowns through these downside obstacles.
You knew from my previous analysis that the price of gold developed a flag pattern that could signal an upside movement. I've told you that breaking above 1,728 and through the downtrend line could announce a potential growth at least towards 1,739.
XAU/USD Forecast!
Gold rallied and it has found resistance at the 1,739 former high. After its strong growth, it could drop a little. A valid breakout above 1,739 may announce further growth and could bring new long opportunities.
Also, a potential drop towards 1,728 could bring long opportunities from around this level.
