Gold rallied in the short term only because the Dollar Index has dropped a little. The price action developed an upward channel pattern which could eventually represent a bearish formation. Gold was traded at the1,757 level at the time of writing.
The yellow metal remains bullish even though the Prelim GDP, Unemployment Claims, and the Prelim GDP Price Index came in better than expected. Fundamentally, Jackson Hole Symposium could bring high volatility and sharp movements. Tomorrow, Fed Chair Powell's remarks could have a big impact on Gold, that's why you have to be careful. In addition, the Core PCE Price Index, Personal Spending, Personal Income, Goods Trade Balance, Revised UoM Consumer Sentiment, and the Prelim Wholesale Inventories could bring life to XAU/USD as well.
XAU/USD Temporary Rebound
Technically, as long as gold stays above the uptrend line, the bias is bullish. It has found temporary resistance at the weekly pivot point of 1,765 and dropped trying to test and retest the immediate support levels.
Validating its breakout above the downtrend line and jumping above 1,754 indicated strong buyers and a potential larger swing higher.
XAU/USD Forecast
Testing and retesting the uptrend line and the 1,752 - 1,754 area and registering only false breakouts may signal new bullish momentum. Larger growth and a buying opportunity could be announced by a valid breakout above the pivot point of 1,765.
A valid breakdown below the support zone and through the uptrend line could activate a sell-off.
