- The price of gold remains bullish as long as it stays above the uptrend line.
- The manufacturing and services data should move the rate tomorrow.
- Only a new lower low activates a larger drop.
The gold price found buyers after reaching yesterday’s low of around $1,969. The yellow metal could try to approach new highs in the short term. However, $2,000 remains a key hurdle for gold.
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The USD remains sluggish. That’s why the yellow metal could come back higher. Fundamentally, gold extended its drop right after the United Kingdom inflation figures.
The CPI rose by 10.1%, beating the 9.8% growth estimated, while Core CPI reported a 6.2% growth exceeding the 6.0% growth forecasted.
Today, the New Zealand Consumer Price Index registered a 1.2% growth, less than the 1.5% growth estimated after the 1.4% growth in the previous reporting period.
Later, the US economic figures should bring life to the XAU/USD. The US Unemployment Claims indicator is expected at 240K in the last week versus 239K in the previous reporting period.
In addition, the Philly Fed Manufacturing Index, Existing Home Sales, and CB Leading Index data will also be released. Tomorrow’s US, Eurozone, and UK manufacturing and services data should move the rate.
Gold price technical analysis: Bullish bias unchanged
Technically, the XAU/USD found support right below the uptrend line, on the descending pitchfork’s downside 50% Fibonacci line. Now, it has jumped far above the median line (ml).
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It has climbed as high as $2,001 today and has found resistance again. The $2,000 psychological level represents an upside obstacle. After its strong rally, the rate could come back down, trying to test and retest the near-term support levels.
The bias remains bullish as long as it stays above the uptrend line. The upside 50% Fibonacci line and the weekly pivot point of 2,011 represent upside targets and obstacles. From the technical point of view, only a new lower low and a valid breakdown below the uptrend line activates a larger drop.
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