The price of gold is located at 1,872 at the time of writing and it seems determined to extend its growth. The USD's retreat forced XAU/USD to approach and reach new highs. After such an impressive rally, the rate could try to test and retest the immediate support levels before jumping higher.
Fundamentally, XAU/USD retreated a little as the US PPI and Core PPI came in better than expected. Tonight, the FOMC Meeting Minutes represent a high-impact event and it could bring sharp movements in both directions. Also, don't forget that the US is to release the inflation figures tomorrow. Lower inflation may force XAU/USD to hit new highs.
XAU/USD Consolidates Its Gains!
Technically, XAU/USD extended its growth after retesting the 1,855 broken resistance. Now, it has jumped above the weekly R2 of 1,869 which represented a static resistance signaling more gains ahead.
As you can see on the H1 chart, the rate increased within an up channel. So, the bias is bullish as long as it stays above the uptrend line.
XAU/USD Outlook!
The former high of 1,874 represents a static resistance. Jumping and closing above it activates further growth and is seen as a buying opportunity.
