The price of gold rallied today and now it is trading at 1,730. The bias is bullish as the USD depreciates. Technically, XAU/USD has escaped from a bullish reversal pattern, so a larger rebound is ahead. DXY's more profound drop could help Gold to jump towards new highs.
Fundamentally, the US inflation data could be decisive. The CPI is expected to report a 0.1% drop in August versus the 0.0% growth in July, while the Core CPI may register a 0.3% growth. In addition, the UK inflation data on Wednesday and the US retail sales figures on Thursday could also bring sharp movements.
XAU/USD Strongly Bullish!
Technically, XAU/USD retested the broken downtrend line representing a dynamic resistance, and now it has registered a new higher high. Stabilizing above 1,726 may announce an upside continuation.
Gold found resistance right above the weekly R1 (1,734) and now it could retest 1,726 before extending its growth.
XAU/USD Forecast!
Staying above 1,726 and registering a bullish closure above today's high at 1,735 may activate further growth and could bring long opportunities.
