Gold is traded lower at $1,883.35 below the $1,887.07 level. The bias remains bullish as the yellow metal stands above strong support levels. It could only come back to test and retest the buyers before jumping higher again.
XAU/USD plunged on Friday after the US has reported better than expected data. The Flash Manufacturing PMI and the Flash Services PMI registered an unexpected and strong growth. Technically, the price has registered only a temporary decline and now is trading right below the former higher highs.
XAU/USD Trading In The Red!
Gold is traded far above the weekly pivot point ($1,871.11) level signaling that it could still increase as long as it stays above this static support. Also, the ascending pitchfork's median line (ml) is seen as strong dynamic support.
The $1,900 psychological level represents a major upside target. It remains to see how the price reacts when it will reach this level. Personally, I believe that only a valid breakdown below the median line (ml) may invalidate further growth.
Gold Forecast!
Gold could resume its growth if it closes above $1,890.14 high. Retesting the weekly pivot ($1,817.11) or registering a false breakdown below could bring a new buying opportunity with a potential upside target at $1,900 level.
The upper median line (uml) could attract the price as long as it stays above the median line (ml).
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