FX.co ★ Gold retesting buyers before US CPI publication

The price of gold rallied in the short term but now it has signaled exhausted buyers ahead of the US data. It's trading at 1,904 at the time of writing below yesterday's high of 1,914. Technically, after its strong growth, a retreat is natural. It could test and retest the immediate

Fundamentally, the US inflation figures should bring high action on Gold. The CPI and Core CPI may report a 0.4% growth in February. Higher inflation could boost the USD, this scenario forces XAU/USD to drop deeper in the short term.

XAU/USD Bullish Bias!

Technically, the current correction is natural. Failing to stay above the weekly R2 (1,909) signaled an overbought situation. The ascending pitchfork upper median line and the 1,894 represent near-term downside obstacles.

Testing and retesting the support levels, registering only false breakdowns may announce that the retreat ended and that the yellow metal could develop a new bullish momentum.

XAU/USD Forecast!

False breakdowns below the upper median line are seen as new long opportunities. A sideways movement above 1,894 represents an upside continuation pattern. A new higher high, a bullish closure above 1,914 represents a bullish signal.