Gold: more gains expected due to poor US data

The price of gold is trading in the green at 2,011 at the time of writing and it seems determined to extend its growth as the Dollar Index is strongly bearish. USD's depreciation may force XAU/USD to approach and reach new highs. Gold edged higher as the US manufacturing sector announced a contraction.

Now, the USD took a hit from the US New Home Sales indicator which dropped from 719K to 679K, even if the traders expected a potential growth to 724K. Tomorrow, the US CB Consumer Confidence should be decisive.

XAU/USD Minor Consolidation!

XAU/USD resumed its growth after failing to take out the uptrend line. It has dropped below it but it has failed to stay there. The bias is bullish as long as it stays above the uptrend line.

The 2,009 historical level represented an upside obstacle. Now, it has jumped above and it tries to consolidate the latest gains. After the last rally, a minor retreat was natural.

Gold Forecast!

The current sideways movement above 2,009 and above the uptrend line could represent a bullish formation. A new higher high, a bullish closure above 2,017 activates further growth and could be seen as a bullish signal.