The price of gold rallied in the short term and now is trading at 1,958 at the time of writing. Now, it stands right below the near-term resistance levels. It remains to see how it reacts, a larger rebound needs strong confirmation. DXY's sell-off forced the greenback to lose significant ground versus its rivals, this situation pushed XAU/USD higher.
Fundamentally, the USD received a helping hand from the US CB Consumer Confidence. The economic indicator was reported at 102.3 points above 99.1 points estimated. USD's rally in the short term after positive US data could punish the price of gold.
XAU/USD At Resistance!As you can see on the h1 chart, XAU/USD failed to stay below 1,939 signaling that the downside movement ended and that the buyers could take it higher. Now, it stands right below the downtrend line which represents an important dynamic resistance.
Today's high of 1,962 and the median line (ml) represent upside obstacles as well. False breakouts above the immediate resistance may announce a new sell-off.
XAU/USD Outlook!A valid breakout above the median line (ml) and through 1,962 activates further growth. A bullish closure above these obstacles represents a bullish signal. The R1 of 1,975 and the upper median line (uml) are seen as targets.