The price of Gold edged higher in the last hours and now it was trading at 1,796 at the time of writing. In the short term, it moves sideways, so we'll have to wait for strong confirmation before looking for new setups.
XAU/USD rallied even if the Dollar Index rallied today. Fundamentally, the US Prelim UoM Consumer Sentiment was reported at 55.1 points above the 52.5 points expected. Also today, the UK GDP and the Prelim GDP came in better than expected but worse compared to the previous reporting period. Gold is bullish also because the UK is expected to enter a recession in the last quarter.
XAU/USD Upside Pressure!
Technically, the price action developed a Rising Wedge pattern. It has dropped below the uptrend line after failing to stabilize above 1,794. Still, its failure to stabilize below the uptrend line or to make a new lower low invalidated a potential deeper drop.
It has found support on the pivot point of 1,784 and now is traded back above the uptrend line. It challenges the 1,794 again.
XAU/USD Outlook!
Stabilizing above 1,794 and making a new higher high, a bullish closure above 1,792 could activate further growth at least towards the 1,805 key resistance.
