FX.co ★ Gold accumulates more bullish energy above 1,830

The price of gold retreated a little in the short term as the Dollar Index rallied. The yellow metal is trading at 1,837 at the time of writing. Still, the retreat could be only temporary as the upside pressure remains high.

Fundamentally, the US data came in better than expected but the DXY seems overbought. The Unemployment Claims came in at 190K versus 196K expected, while Revised Unit Labor Costs and Revised Nonfarm Productivity came better than expected as well.

XAU/USD Upside Continuation!

Despite positive US data, XAU/USD dropped a little but it has found support on the 1,830 former low and now it has turned to the upside again. The median line (ml) and the 1,844 former high represent upside obstacles.

Technically, staying below the median line (ml) and dropping below 1,830, a new lower low activates more declines and invalidates an upside continuation.

XAU/USD Forecast!

The false breakdowns below 1,830 represented long opportunities. A valid breakout above the median line (ml) and through 1,844 is seen as a new buying signal.