FX.co ★ GOLD Correction Is Finally Over

XAU/USD has slipped lower in the short term but only to retest the broken dynamic resistance. Technically, the rate has escaped from a major chart pattern signaling the upside continuation.

The yellow metal profits from the USD's decline and it could approach the $2,000 soon. Still, we cannot exclude a drop towards the $1,900 level as well before jumping higher. Gold could register an important decline only if the US inflation data will come in better than expected tomorrow.

XAU/USD has broken above the black downtrend line and it has passed above the median line (ml) of the red ascending pitchfork. Now, it has come back down at $1,921 to retest the median line (ml). A rejection or a false breakdown should signal another bullish momentum.

Another higher high, jump above $1,933 level suggests an increase at least till the upper median line (uml) of the ascending pitchfork. Technically, the upside breakout from the ascending triangle indicates a broader increase.

• XAU/USD Trading Tips

We could go long if the rate jumps and closes above the $1,933 today's high with a first upside target at the upper median line (uml). The $2,000 and the $2,075 could be used as upside targets.