The price of gold rallied again and erased yesterday's losses. It's trading at 1,995 at the time of writing. After its strong growth, a new retreat is natural, the price could test and retest the near-term support levels before jumping higher.
Gold rallied as the USD crashed after the CB Consumer Confidence came in worse than expected yesterday. Today, the Australian CPI m/m rose by 1.4% versus the 1.3% expected, while CPI y/y reported a 6.3% growth compared to the 6.5% growth estimated. Later, the US is to release the Goods Trade Balance, Durable Goods Orders, Core Durable Goods Orders, and Prelim Wholesale Inventories. Poor US figures should lift the yellow metal.
XAU/USD Swing Higher In Cards!
From the technical point of view, XAU/USD came back above the downtrend line and above the weekly pivot point of 1,989. It has found temporary resistance above 1,998. After its strong growth, a minor drop was natural.
It could test and retest the weekly pivot point of 1,989 before jumping higher. A minor accumulation should bring new more buyers into the game.
XAU/USD Outlook!
A new higher high, a bullish closure above 2,003 is seen as a bullish signal.
