XAU/USD extended its growth as expected and now is trading at 1,944. You knew from yesterday's analysis that the yellow metal activated more gains. Still, after its strong growth, we cannot exclude a minor retreat as the price could test and retest the immediate support levels before resuming its swing higher.
Fundamentally, the price of gold jumped higher as the US Prelim GDP, ADP Non-Farm Employment Change, Prelim GDP Price Index, and Goods Trade Balance came in worse than expected in the last session.
Today, the US is to release the Unemployment Claims indicator which could be reported higher at 236K versus 230K in the previous reporting period, and the Core PCE Price Index which may register a 0.2% growth. Tomorrow, the US is to release the NFP, Average Hourly Earnings, Unemployment Rate, and the ISM Manufacturing PMI. These represent high-impact events. Poor US data should send the XAU/USD towards new highs.
Gold Bullish Bias!
As you can see on the H1 chart, the price resumed its growth and reached 61.8% (1,948) after stabilizing above the 50% (1,936) retracement level.
Technically, it has registered only false breakouts above the 61.8% and through the weekly R2 (1,946) signaling exhausted buyers.
The bias is bullish, so temporary retreats could bring us new longs. Staying near the 61.8% (1,948) retracement level may announce an imminent breakout.
XAU/USD Forecast!
A bullish closure above the 61.8% (1,948) retracement level is seen as a new buying opportunity.
