- XAU/USD is bullish despite temporary retreats.
- The US and the Canadian economic figures should bring high action today.
- A new higher high activates further growth.
The gold price is trading in the green at 1,943 USD/oz at the time of writing. The yellow metal is currently fighting to extend its gains, even as the US dollar is bullish.
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The US economic data released in the previous session came in better than expected, which caused the gold price to retreat slightly. However, the bias remains bullish, and the gold price could continue to rise if the upcoming US and Canadian data are weak.
The Swiss CPI rose by 0.2% in August, as expected. Later today, the US Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings, and ISM Manufacturing PMI will be released. This data could have a significant impact on the gold price. If the data is weak, it could boost the gold price. However, if the data is strong, it could send the gold price down.
The Canadian GDP is also expected to be released today. If the GDP growth falls short of expectations, it could also support the gold price.
Overall, the bias in the gold market is bullish. However, the upcoming US and Canadian data could change the sentiment. Investors should closely monitor these data releases.
Gold price technical analysis: Weak outlook
From a technical perspective, the XAU/USD price retreated after testing and retesting the 61.8% Fibonacci retracement level (1,948). However, this retreat could be only temporary. After such a strong rally, a retracement was natural. The failure of the price to reach and retest the 50% Fibonacci retracement level (1,936) indicates exhausted sellers and strong upside pressure.
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The breakout of the 61.8% Fibonacci retracement level and the formation of a new higher high confirm the upside continuation towards the median line (ML) of the ascending pitchfork.
The following are some of the key technical levels to watch:
- 61.8% Fibonacci retracement level (1,948)
- 50% Fibonacci retracement level (1,936)
- Median line (ML) of the ascending pitchfork (1,958)
If the price breaks above the ML, it could target the next resistance level at 1,970. However, if the price fails to break above the ML, it could pull back to the 50% Fibonacci retracement level.
Overall, the bias in the XAU/USD market is bullish. However, investors should closely monitor the price action and be prepared for a possible pullback.
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