Gold Found Support Again!

Gold is trading in the green after retesting the dynamic support. The pressure remains high despite a temporary rebound. The yellow metal plunged after the USDX's rally. Still, the bias remains bullish despite yesterday's drop.

XAU/USD is still trading above strong support levels, so it could start increasing soon again. The US is to release the Unemployment Claims, the PPI, and the Core PPI. Better than expected data could push the USD higher. This scenario could send XAU/USD down again in the short term.

XAU/USD Retesting The Buyers!

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Gold dropped after another rejection from the 1,843.40 static resistance. The price plunged below the median line (ml) and it retested the weekly (1813.79) and the upper median line (UML).

The price could increase in the short term to retest the broken median line (ml). The selling pressure will be high as long as the price stays below the median line (ml). The major dynamic support stands at the inside sliding line (sl).

Outlook!

Its failure to stabilize above the ascending pitchfork's median line (ml) signaled that Gold could develop a significant correction in the short term. It could still decrease to retest the 1,800 psychological level and the sliding line (sl) before developing a new swing higher.

A valid breakout above 1,843.40 could confirm a further jump towards the 1,900 psychological level.

The material has been provided by InstaForex Company - www.instaforex.com

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