FX.co ★ Gold: upside reversal possible

The price of gold is trading at 1,897 at the time of writing versus 1,904 today high and above 1,889 daily low. In the short term, it is moving somehow sideways, that's why we have to wait for a fresh trading opportunity. Technically, the price action signaled a new leg higher, but we still need confirmation.

The yellow metal dropped in the last hours, even though the US economic data came in mixed. The Existing Home Sales came in at 4.07M versus 4.15M, while Richmond Manufacturing Index was reported at -7 points versus -10 points estimated. Tomorrow, the manufacturing and services data should move the rate.

XAU/USD Range!

As you can see on the H1 chart, the rate found demand at 1,885 and now it has jumped far above the downtrend line signaling a reversal.

It has found resistance at 1,903 former high and it has tried to reach and retest the broken downtrend line. Failing to reach it signaled strong upside pressure in the short term.

XAU/USD Outlook!

Jumping and closing above 1,903, making a new higher high activates a larger growth and is seen as a buying opportunity.