- The bias is bullish in the short term despite the current retreat.
- It could test and retest the median line (ml) before resuming its growth.
- The upper median line (UML) is seen as the next target.
The gold price climbed as high as $1,855 today. However, now the yellow metal has retreated a little and is trading at $1,847.
XAU/USD turned to the upside as the US dollar depreciated versus its rivals. The greenback lost significant ground versus its rivals after mixed data reported by the US on Friday. The Non-Farm Payrolls came in at 336K in September versus 171K expected.
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The Unemployment Rate remained at 3.8% even if the specialists expected a potential drop to 3.7%, while Average Hourly Earnings increased by 0.2% less compared to the 0.3% growth estimated.
Today, only the FOMC members’ remarks can provide stimulus to the market. Still, the technical factors could drive the market. The fundamentals should bring high action starting from Wednesday, when the FOMC Meeting Minutes, PPI, and Core PPI are seen as high-impact events.
Furthermore, the US is to release the inflation figures on Thursday. Higher inflation could boost the greenback and may force the XAU/USD to drop. On the contrary, lower inflation could lift the price of gold.
Gold Price Technical Analysis: Consolidating Gains
From the technical point of view, the XAU/USD retested the lower median line (LML) of the descending pitchfork, confirming it as a major dynamic support.
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It has failed to stabilize below $1,815 former low signaling exhausted sellers (oversold). Now, it has jumped far above the median line (ml).
Still, after the last leg higher, the rate could come back to test and retest the broken median line (ml) or the $1,830 demand zone before jumping higher. The median line represented a dynamic resistance, so confirming its breakout may announce an upside continuation after needing its retreat. The upper median line (UML) stands as the next major upside target if the rate continues to grow.
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