FX.co ★ Gold confirms its breakout

The price of gold rallied in the short term and now is trading at 1,994 at the time of writing. It has climbed as much as 2,000 today, registering a new high. Still, after the impressive growth, a retreat was natural.

Today, the US CB Consumer Confidence indicator should be decisive. The New Home Sales and Richmond Manufacturing Index data will be released as well. In my opinion, positive US data should lift the greenback and could send XAU/USD down.

XAU/USD Forecast!

XAU/USD jumped above the downtrend line but it has found resistance at 1,998. It has registered only false breakouts through this static resistance. It's trapped between the 1,998 and 1,971 levels.

After its amazing rally, a retreat was natural, the rate tries to test and retest the broken downtrend line before resuming its growth. The weekly pivot point of 1,989 stands as a support level.

XAU/USD Outlook!

Consolidating above the weekly pivot point of 1,898 and above the downtrend line indicates that the price accumulated new bullish energy before extending its growth. A valid breakout through 1,998 validates further growth and is seen as a bullish signal.