FX.co ★ Gold shines as USD depreciates

XAU/USD rallied in the second part of the day and now is trading at 1,848.43. It has climbed as high as 1,853.88 where it has found resistance. The yellow metal rallied as the USD depreciated a little versus its rivals. DXY's retreat forced the greenback to drop in the short term.

The price of gold was somehow expected to grow after the US Flash Manufacturing PMI and the Flash Services PMI reported worse than expected data yesterday. Tomorrow, the BOC and FOMC could shake the markets. Anything could happen tomorrow, that's why you have to be careful as XAU/USD could register quick sharp movements in both directions around these high-impact events.

XAU/USD Found Temporary Resistance!

XAU/USD drops at the time of writing but this could be only a temporary drop. As you can see, the price registeerd only a false breakout above the weekly R1 (1,853.09). Technically, the bias remains bullish as long as it stays above the lower median line (LML).

In the short term, it could test and retest the former highs before resuming its upside movement. A valid breakout above the R1 could confirm further growth.

XAU/USD Prediction!

Jumping and closing above 1,853.88 today's high could validate an upside continuation and could bring new long opportunities! The bias is bullish as long as it's traded above the lower median line (LML).