FX.co ★ Gold rallies on mixed US data

The yellow metal extended its growth as the Dollar Index crashed. The USD depreciation attracted more buyers on XAU/USD. It's traded at 1,672 at the time of writing far above yesterday's low of 1,616. Gold increased by 3.64% from this low to 1,675 today's high.

As you already know, the US data came in mixed. The NFP was reported at 261K versus the 197K expected, Average Hourly Earnings rose by 0.4% beating the 0.3% forecast, while Unemployment Rate increased unexpectedly from 3.5% to 3.7%, the traders expected only a potential growth to 3.6%.

XAU/USD Reached Critical Resistance!

XAU/USD edged higher after reaching the 1,617 former low. The 1,617 - 1,614 area represented a major downside obstacle. Now, it has taken out the dynamic resistance represented by the downtrend line.

It has ignored also the former highs and now it challenges the 1,675 key resistance. After its amazing rally, we cannot exclude a temporary retreat. Still, as long as it stays above 1,658, XAU/USD could resume its leg higher.

XAU/USD Forecast!

Making a valid breakout through 1,675 activates a larger growth and offers the chance to catch a potential upside reversal. This is seen as a long opportunity.