The price of gold rallied in the last hours and now is trading at 1,924 far above today's low of 1,907. As you already know from my analyses, the bias is bullish, so further growth is natural.
Fundamentally, the US Retail Sales, Core Retail Sales, PPI, Core PPI, and Empire State Manufacturing Index came in worse than expected yesterday. Gold received a helping hand from the Australian data. Unemployment Rate dropped from 3.7% to 3.5% below 3.6% expected, while Employment Change came in at 64.6K versus 49.7 points expected.
Later, the ECB and the US Unemployment Claims could really shake the markets. These are seen as high-impact events. The ECB Press Conference could change the sentiment in the short term, that's why we need to be careful.
XAU/USD Bullish!
As you can see on the H1 chart, the rate came back to test and retest 1,914, the weekly R2 (1,909), and the broken downtrend line. You knew from yesterday's analysis that jumping and closing above 1,914 activates further growth.
Still, after its strong rally, a temporary retreat was natural. The rate came back to test and retest the immediate support levels before jumping higher.
XAU/USD Outlook!
The rate failed to test and retest the upper median line (uml) signaling strong upside pressure. The last false breakdown below the R2 (1,909) followed by the valid breakout above 1,914 was seen as a buying opportunity. The 1,937 former high represents the first target. A larger growth could be activated by a bullish closure above this obstacle.
