The price of gold registered an amazing rally yesterday after the US CPI come in above expectations. The yellow metal has taken advantage of the Dollar Index's sell-off. XAU/USD rose by more than 2% in yesterday's trading session.
It stands at 1,790.47 below the 1,796.24 yesterday's high. Technically, the rate has reached a resistance level, an upside obstacle, so a minor retreat is natural. A temporary decline could help us to catch a new bullish momentum.
The US PPI, Core PPI, and Unemployment Claims could bring more action on this commodity. Also, tomorrow, the US is to release its retail sales data. Some poor economic figures at the end of the week could boost the XAU/USD.
XAU/USD Reached Dynamic Resistance!
XAU/USD rallied after closing above the weekly pivot point (1,761.52). As you already know from my analyses, the price of gold could jump higher as long as it stays above the 1,750 static support and as long as it stands within the ascending pitchork's body.
As you can see, XAU/USD reached the inside sliding line (sl) of the ascending pitchfork which represents dynamic resistance. It failed to reach the weekly R1 (1,796.91) but I believe that the rate will approach and hit this obstacle soon.
It trapped between the inside sliding line (sl) and the ascending pitchfork's lower median line (lml). A temporary decline, a retreat towards 1,781.40, a former high, could bring great long opportunities. XAU/USD is bullish as long as it stays within the ascending pitchfork's body.
Coming back to retest 1,781.40 or consolidating in the short term could bring fresh buying opportunities. Making a valid breakout through the sliding line (sl) could announce strong growth towards the 1,834 higher high and up to the median line (ml).The material has been provided by InstaForex Company - www.instaforex.com