The price of gold is trading in the green at 1,913 on the H1 chart. XAU/USD registered sharp movements in both directions around the US inflation data. Technically, the price action signaled exhausted sellers. Still, a strong rebound needs strong confirmation.
Fundamentally, you knew from my previous analysis that the US economic data could be decisive. The CPI rose by 0.6% matching expectations, CPI y/y reported a 3.7% growth, beating the 3.6% growth estimates, while Core CPI increased by 0.3%, exceeding the 0.2% growth forecasts. In addition, the UK GDP reported a 0.5% drop versus the 0.2% drop expected.
XAU/USD Downside Seems Over
Technically, the price of gold registered a false breakout with great separation below the weekly S1 (1,907) and through the pitchfork's lower median line, indicating that the sell-off could be over.
The former high of 1,915 represents a static resistance. In the short term, it could move sideways around 61.8% (1,911).
XAU/USD Forecast
A new higher high, a bullish closure above today's high of 1,915 activates a larger rebound and is seen as a new buying opportunity.
