The price of gold rallied in the last hours and now it was trading at 1,636 at the time of writing. DXY's sell-off forced the USD to depreciate versus the other major currencies, so Gold took advantage of this situation.
Gold reached a new low of 1,614 today. The pressure was still high after the US CB Consumer Confidence was reported at 108.0 above 104.0 expected yesterday. Today, the US data came in mixed. Goods Trade Balance came in at -87.3B above -88.9B expected, while the Prelim Wholesale Inventories reported a 1.3% growth versus only a 0.4% growth expected.
Later, Pending Home Sales may report a 0.9% drop. In addition, Powell's remarks and the FOMC members' speeches could have a big impact as well.
XAU/USD Channel Violated!
Technically, the price signaled exhausted sellers and an oversold after failing to come back towards the channel's downside line. Now, as the price exploded, it has registered an aggressive breakout through the downtrend line signaling strong buyers.
1,641 represents a potential upside obstacle. Still, after its strong rally, we cannot exclude a temporary retreat.
XAU/USD Forecast!
Coming back to test and retest 1,626 and the broken uptrend line could bring new long opportunities. Also, jumping and closing above 1,641 activates further growth towards the 1,654 key resistance.
