FX.co ★ Gold retesting buyers post-US CPI

Gold crashed in the last two hours and now is trading at 2,006 at the time of writing. It has climbed as much as 2,028 today where it has found resistance. XAU/USD extended its growth as the USD depreciated versus its rivals.

Fundamentally, the CPI rose by 0.1% on month versus the 0.2% growth expected, while the Core CPI surged by 0.4%, matching expectations. Lower inflation weakened the USD and boosted the yellow metal. Furthermore, the BOC maintained its monetary policy as expected. Tonight, the FOMC Meeting Minutes represent a high-impact event and could bring high action on Gold.

XAU/USD Erased Today's Gains!

Technically, XAU/USD extended its growth after taking out the 2,007 resistance. Still, it has failed to reach the 2,032 former high which represents an upside target. The fundamentals brought sharp movements in both directions.

The bias remains bullish as long as it stays above the uptrend line. The weekly pivot point of 1,996 represents a downside obstacle as well.

XAU/USD Forecast!

Testing and retesting the uptrend line, registering false breakdowns below it may announce a new bullish momentum. This is seen as a bullish signal. A new higher high really confirms an upside continuation and offers a buying opportunity as well.