The price of gold is strongly bullish as the USD depreciated versus its rivals. The Dollar Index's massive drop helped the XAU/USD buyers to drag it higher. The yellow metal ignored strong upside obstacles, so further growth could be natural.
Fundamentally, XAU/USD rallied as the US reported lower inflation in October. The CPI rose by 0.0% less versus the 0.1% growth estimated, CPI y/y registered only a 3.2% growth compared to the 3.3% growth forecasted, while Core CPI announced a 0.2% growth versus the 0.3% growth expected.
XAU/USD Key Breakout!
Technically, XAU/USD turned to the upside after registering only false breakdowns below the 38.2% (1,933) retracement level. It has extended its growth after stabilizing above the median line (ml).
Now, it has jumped above the upper median line (UML) and above the 23.6% (1,962) retracement level which represented key upside obstacles.
XAU/USD Forecast!
Testing and retesting the upper median lines (UML, uml) and 23.6% (1,962), registering only false breakdowns may announce a new bullish momentum. Consolidating above these broken levels could bring us new longs. Also, a new higher high, a bullish closure above 1,971 brings us a new buying signal.
