FX.co ★ Gold: further growth still possible

The price of gold rallied and now is located at 1,926 at the time of writing. The upside pressure is high, so more gains are natural. I've told you in my previous analysis that XAU/USD could extend its growth despite minor retreats.

Fundamentally, Gold edges higher as the US JOLTS Job Openings and CB Consumer Confidence came in worse than expected earlier, weakening the USD. Tomorrow, the Australian CPI, and the US ADP Non-Farm Employment Change and Prelim GDP should really shake the markets.

XAU/USD At Resistance!

Technically, the price of gold retreated a little in the short term which was natural after the last rally. It has failed to come back to test and retest the uptrend line signaling strong upside pressure.

Now, it challenges the 1,926 former high and the weekly R1 of 1,930. These represent key resistance levels.

XAU/USD Forecast!

Closing and staying above 1,926 and above the R1 (1,930) activates an upside continuation and is seen as a new buying signal. The R2 (1,946) stands as the first target.