Gold trades at 1,868.42 level below 1,875.04 higher high. The price has decreased a little after its last aggressive rally trying to capture more bullish energy before jumping higher. The bias is bullish despite a temporary decline.
DXY's decline helped the price of gold to jump higher again. It could test and retest the immediate support levels before moving towards fresh new highs. Gold could register strong moves today as the UK and Canada will publish their inflation data.
XAU/USD Consolidating Its Gains!
Gold continues to pressure the R2 (1,870.13) static resistance. Its valid breakout above the 1,843 static resistance confirmed more gains in the short term. Actually, the bias remains bullish as long as the price is traded above the ascending pitchfork's median line (ml).
The immediate resistance stands at the R2 while the immediate support is at 1,863.28 immediate low. Registering a valid breakout above the R2 (1,870.13) and making a new higher high indicates a further growth towards the R3 (1894.17) and up to the 1,900 psychological level.
Gold Forecast!
A minor decrease to retest the R1 (1,856.63) and the median line (ml) could bring a new upwards movement. Also, jumping and stabilizing above the R2 (1,870.13) signals more gains.
The ascending pitchfork's upper median line (uml) could attract the price if it stays above the median line (ml).
The material has been provided by InstaForex Company - www.instaforex.com