The price of gold climbed as much as 1,881 registering a new high but now it has slipped lower and it's trading at 1,871 at the time of writing. The bias remains bullish as the Dollar Index remains under massive selling pressure after mixed data was reported on Friday.
As you already know, the NFP and Unemployment Rate came in better than expected, while Average Hourly Earnings and the ISM Services PMI came in worse than expected. Factory Orders registered negative data as well.
Today, the US Consumer Credit and the Canadian Building Permits could have a small impact. The most important event of the week is represented by the US inflation data publication. Lower inflation reported by the CPI and Core CPI indicators could lift XAU/USD.
XAU/USD Trying To Accumulate More Bullish Energy!
From the technical point of view, XAU/USD passed above the channel's upside line but it was stopped by the 1,879 historical level. Now, it has dropped below the upside line and it could come back to test and retest the 1,865 static support.
After its strong rally, a temporary drop is natural. It could come back to test and retest the near-term downside obstacles before resuming its growth.
XAU/USD Forecast!
As long as it stays above 1,865, the rate could extend its growth. A valid breakout through 1,879 activates further growth and brings new long opportunities. This scenario may signal further growth.
