The price of gold rallied and now is trading at 1,911 at the time of writing. You knew from my analyses that the bias is bullish, so further growth is natural. XAU/USD remains bullish after the US CPI m/m reported a 0.1% drop in December while the CPI y/y dropped to 6.5% as expected.
Earlier today, the US Prelim UoM Consumer Sentiment came in better than expected, at 64.6 points versus the 60.8 points forecasted. Still, Gold could approach and reach new highs as the DXY remains bearish despite temporary rebounds.
XAU/USD Strongly Bullish!
Technically, XAU/USD registered only false breakdowns below 1,879 signaling strong upside pressure. Now, it has taken out the weekly R2 (1,899) and the 1,900 psychological level signaling further growth ahead.
Personally, I've drawn an ascending channel, so as long as it stays within this pattern, the rate could approach and reach new upside targets.
XAU/USD Outlook!
The breakout above the weekly R2 (1,899) was seen as a long signal. The rate only retested the broken level and the former high before resuming its growth. As long as it stays above the uptrend line, XAU/USD could approach and reach the upside line and the weekly R3 (1,928).
