Gold climbed as much as 2,012 today where it has found resistance. Now, it has turned to the downside and is trading at 2,001, right above the 2,000 psychological level which stands as a downside obstacle.
After its massive sell-off, a new leg higher was somehow expected. Still, it remains to see how it reacts here as the rate reaches a resistance zone. XAU/USD jumped higher in the last hours as the USD took a hit from the Unemployment Claims. The indicator came in at 245K in the last week versus the 240K expected. In addition, the US Existing Home Sales, CB Leading Index, and Philly Fed Manufacturing PMI came in worse than expected as well.
XAU/USD Retesting The Buyers!
Technically, XAU/USD rallied after failing to stay below the weekly S1 (1,974). Now, it has reached the weekly pivot point of 2,011. As you can see on the H1 chart, the rate registered only a false breakout with great separation through this level signaling exhausted buyers.
The price of gold is challenging the median line (ml) of the ascending pitchfork which represents a dynamic support.
XAU/USD Forecast!
A new lower low, a bearish closure below 1,997 activates a deeper drop and is seen as a selling signal.
On the contrary, a valid breakout through the weekly pivot point of 2,011 activates further growth at least towards the upper median line (uml).
