FX.co ★ Gold attracted by 1,834 resistance

Gold extends its growth as the Dollar Index remains sluggish. The yellow metal reached the level of 1,828.40 today registering a new high. Still, it remains to see if this will be larger growth or only a temporary rebound.

In the short term, the bias is bullish, so it could approach and reach new upside obstacles. Surprisingly or not, XAU/USD rallied despite the fact that the US Trade Balance came in better than expected. The indicator was reported at -80.7B points above -83.0B expected. Gold rebounded ahead of the US inflation data. The CPI and Core CPI indicators will be released on Thursday.

XAU/USD edges higher

Gold extended its growth after taking out the resistance represented by the weekly R1 (1,820.00). The next upside target is represented by the Ascending Pitchfork's median line (ml). Also, the weekly R2 (1,832.11) and the 1,834.19 are seen as upside obstacles as well.

A valid breakout above these upside obstacles could confirm an upside continuation and could bring new long signals. On the contrary, false breakouts or a strong bearish pattern could announce a new leg down.

Gold forecast

XAU/USD could confirm a potential further growth towards the Ascending Pitchfork's upper median line (uml) only if it jumps and stabilizes above the median line (ml) and above the 1,834.19.