The price of Gold is trading at the 1,860.97 level and it seems strong enough to be able to resume its growth. Despite the DXY's growth, the yellow metal has managed to jump higher and now is almost to stabilize above a static resistance.
As you already know, the price of gold rallied yesterday after the US reported higher than expected inflation. XAU/USD is very attractive after ignoring the 1,834.04 upside obstacle. Tomorrow, the US JOLTS Job Openings and the Prelim UoM Consumer Sentiment could bring more action.
Technically, the Dollar Index could retreat a little after its amazing rally. This situation could help XAU/USD to approach and reach new highs.
XAU/USD Ended Its Retreat!
XAU/USD is back above the weekly R2 of 1,857.83. Yesterday, it has registered only a false breakout with great separation above this obstacle. It has failed to reach and retest the weekly R1 (1,837.97) and the 1,834.04 support levels signaling strong buyers.
A minor consolidation here above the R2 could indicate an upside continuation and could bring new long opportunities.
Gold Forecast!
XAU/USD is bullish after taking out the 1,834.04 upside obstacle. Despite temporary retreats or sideways movements, the price of gold could jump higher. 1,900 psychological level is seen as the next major upside target.
The material has been provided by InstaForex Company - www.instaforex.com