The price of gold rallied today and now is trading at 1,962 at the time of writing. The Dollar Index's drop helped the XAU/USD to jump higher. After the last sell-off, a bounce back was expected. Still, an upside continuation needs confirmation.
The XAU/USD rallied after the US data dump. The Unemployment Claims was reported at 217K versus 218K in the previous reporting period. Later, the Fed Chair Powell's speech represented a high-impact event and could bring sharp movements. Tomorrow, the UK and the US data should move the rate.
XAU/USD Bullish Momentum!
Technically, the rate escaped from the down channel signaling that the downside movement ended and that the buyers could take it higher again.
It has jumped above the median line (ml) of the ascending pitchfork, which represents a dynamic resistance. In the short term, the rate could come back to test and retest it before trying to resume its growth.
XAU/USD Forecast!
Consolidating above the median line (ml) and making a bullish closure above 1,964 activates further growth and is seen as a bullish signal. The upper median line (uml) represents the first target.
