FX.co ★ Technical review for XAU/USD: gold may increase in price

Gold is trying to bounce up after trading volatilely in the past three days, which was caused by the results of the latest Fed meeting and upcoming April employment data from the US. Price rose above a strong resistance level and, if goes on further, could increase locally amid possible weak data on US employment. If the figures really turn out to be lower than expected, the market may interpret it as a signal for the Fed to pause in raising rates, which will return risk appetite. That, in turn, will provoke an increase in gold.

technical picture:

The quote is above the middle line of the Bollinger indicator, above the SMA 5 and SMA 14. The relative strength index (RSI) is at 50%, while the stochastic indicator is in the oversold zone.

Possible dynamics:

Gold may rally to 1912.00.