• The bias is bullish despite temporary drops.
  • A new higher high activates further growth.
  • The US data could bring sharp movements later today.

The price of gold ended its short-term drop and is now trading at $1,847, far above yesterday’s low of $1,827.

Gold developed a strong upward movement as the USD was in a bullish corrective phase. Today, the fundamentals could move the prices. The Switzerland Consumer Price Index could report a 0.1% drop in December versus the 0.0% growth in the previous reporting period.

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Furthermore, the US data could be decisive later, and the economic figures could bring sharp movements in the USD and Gold. The FOMC Meeting Minutes could shake the markets tonight. A dovish report could weaken the greenback and could boost the yellow metal.

In addition, the US ISM Manufacturing PMI is expected to drop from 49.0 points to 48.5 points, indicating further contraction, while JOLTS Job Openings could drop from 10.33M to 10.04M in November, which could be bad for the USD.

The Wards Total Vehicle Sales could also drop from 14.1M to 13.4M in the last month, while the ISM Manufacturing Prices are expected at 42.9 points versus 43.0 points in the previous reporting period.

Gold price technical analysis: Bullish bias

Gold price

Gold extended its rise after taking out the $1,824 static resistance. It has climbed as high as $1,849, finding temporary resistance. The yellow metal dropped a little in yesterday’s trading session.

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It has retested the $1,833 former high and then rallied. The price seems determined to extend its growth. The $1,849 former high stands as a key resistance.

A valid breakout through this resistance may announce further growth. Jumping, closing, and stabilizing above this level indicates potential growth, at least toward the R2 (1,854). Only taking out this resistance could confirm a broader rally.

The minor uptrend line stands as a dynamic support. The $1,833 and $1,824 are seen as major support levels. The bias is bullish despite minor corrective waves. Minor retreats could bring new long opportunities.

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Source: https://www.forexcrunch.com/gold-price-ends-downside-correction-focus-shifts-to-us-nfp/