The price of gold edged higher and now is trading at 1,918 at the time of writing. DXY's massive drop forced XAU/USD to approach and reach new highs. Technically, the price action signaled exhausted sellers and announced a potential leg higher. Still, it's premature to talk about this scenario as the rate stands below strong upside obstacles.
Surprisingly, XAU/USD jumped higher, even though the US data came in mixed. Revised UoM Consumer Sentiment was reported at 64.6 points versus 63.9 points expected, while Core PCE Price Index rose by 0.3% matching expectations.
XAU/USD Challenges Resistance Levels!
XAU/USD registered only false breakdowns below 1,901, failing to approach and reach the channel's downside line again. Now, it has jumped above the downtrend line and it is challenging the 1,917 static resistance.
It is almost to hit the median line (ml) of the ascending pitchfork which represents a dynamic resistance.
XAU/USD Outlook!
A valid breakout above the median line (ml) is seen as a new buying signal. The upper median line (uml) represents an upside target.
