Gold stands higher as the USD's depreciation signaled a risk-off sentiment into the markets. It remains to see how the price of gold will react later as the FOMC will have a big impact on this market as well.
COVID-19 risk continues to grow in this period, so the yellow metal could become very attractive again. The FOMC Press Conference may bring high volatility and high action on this commodity.
Tomorrow, the SNB and the BoE could shake the price as well and could bring high action. Also, Euro-zone and the US manufacturing and services data may boost or demolish the yellow metal.
XAU/USD Downtrend Line Breakout?
Gold consolidates above the weekly pivot point (1,769.52) level. It's fighting hard to approach and the immediate downtrend line. Technically, only a valid breakout above it may really announce further growth.
Failing to stabilize under the median line (ml) of the ascending pitchfork signaled strong bullish pressure. Personally, I'll wait for a potential valid breakout through the downtrend line before considering going long.
Gold Forecast!
A valid breakout above the downtrend line may signal further growth towards the 1,834.04 high. On the other hand, failing to reach the downtrend line or registering only false breakouts could announce a new downside movement.
The material has been provided by InstaForex Company - www.instaforex.com