The price of Gold edged higher in the last hours and now is trading at 1,751 at the time of writing below 1,753 today's high. You knew from my previous analysis that the yellow metal maintains a bullish bias and that an upside continuation is in cards.
Fundamentally, XAU/USD rallied after the US reported lower inflation. The Consumer Price Index surged by 0.4% in October versus the 0.6% expected, while Core CPI registered only a 0.3% growth versus the 0.5% growth expected. Lower inflation could help the FED to deliver a 50 bps hike in December, that's why the USD depreciated and the yellow metal rallied.
In addition, the US Unemployment Claims came in at 225K versus the 220K expected.
XAU/USD Rallied On Lower US Infaltion!Technically, XAU/USD rallied after consolidating above the R1 (1,702). You knew from my previous analysis that the price could extend its growth as long as it stays above the uptrend line.
As you can see on the H1 chart, the rate ignored 1,718, R2 (1,724), the upper median line (uml), 1,729, and the 1,735 upside obstacles. Still, after its strong rally, we cannot exclude a temporary retreat before jumping higher.
XAU/USD Outlook!Jumping and closing above 1,735 was seen as a long opportunity. A new buying opportunity could appear after a minor retreat. Coming back to test and retest 1,735 could bring new longs. The R3 (1,767) and the warning line are seen as upside obstacles.