Gold continues to move sideways in the short term. The price tries to accumulate more bullish energy before resuming its growth. It remains to see how the yellow metal will react as the US is to release high-impact data tomorrow.
XAU/USD is trading at the 1,809.90 level and it seems undecided. The price has slipped lower, even though the Dollar Index has plunged. Most likely, traders are anticipating the US Non-Farm Payrolls before taking action. The NFP is expected at 720K in August below 943K in July, while the Unemployment Rate could drop from 5.4% to 5.2%. In addition, the ISM Services PMI could drop from 64.1 to 61.9 points indicating the expansion slowdown, while the Average Hourly Earnings indicator may increase by 0.3%.
Poor US data and USD's depreciation announces a risk-off sentiment, this scenario could force the yellow metal to increase.
XAU/USD Bullish Bias!
The price of gold is still bullish as it's still located above the uptrend line. It has come back to test and retest the uptrend line and the weekly pivot point (1,804.51). I've told you in my previous analysis that Gold could resume its upwards movement if it makes a new higher high, to jump above the 1,823.27.
The current sideways movement is natural after its aggressive breakout through the first warning line (WL1) of the descending pitchfork.
The bias is bullish, so a valid breakout above 1,823.27 former high brings new long opportunities with potential targets at the up channel's upside line.The material has been provided by InstaForex Company - www.instaforex.com