Gold has managed to jump higher as the US Dollar has depreciated aggressively in the last hours. Powell's dovish remarks about the economic outlook at the Jackson Hole Economic Symposium crashed the Dollar. The yellow metal takes advantage of this situation and is almost about to escape from a major chart pattern.
The risk-off sentiment dominates the markets right now. XAU/USD challenged a dynamic resistance. DXY's further drop could help the price of gold to resume its upwards movement. The US data have come in mixed, Gold has slipped lower after these figures, reaching 1,784.96 today's low.
XAU/USD Shines Again
Gold has managed to jump above the first warning line (WL1) of a major descending pitchfork. It was trading at the 1,812 level at the time of writing. Confirmation of the current breakout signals that XAU/USD could resume its growth. The major upside target is seen at 1,900 psychological level.
Outlook
Stabilizing above the first warning line (WL1) signals an upside continuation. Gold was trapped between the warning line (WL1) and the upper median line (UML) within a down channel. Escaping from this pattern signals more gains.
The material has been provided by InstaForex Company - www.instaforex.com