FX.co ★ Gold targeting 61.8% retracement level

The price of gold is trading in the green at 1,939 at the time of writing. The upside pressure is high as the Dollar Index is bearish. USD's depreciation should push the yellow metal toward new highs. Temporary retreats could bring us new longs.

Fundamentally, the US is to release high-impact data later, so XAU/USD should print sharp movements. The Prelim GDP could register a 2.4% growth again, ADP Non-Farm Employment Change is expected at 194K in August versus 324K in July, while Pending Home Sales may report a 0.8% drop. In my opinion, only better-than-expected US data could invalidate further growth.

XAU/USD Strongly Bullish!

As you can see on the H1 chart, the price of gold ignored the 1,929 former resistance, confirming further growth.

Now, it has jumped and stabilized above the 50% (1,948) retracement level, validating an upside continuation.

XAU/USD Forecast!

Breaking and consolidating above the 50% (1,936) retracement level was seen as a buying opportunity with a first target at the 61.8% Fibonacci level coinciding with 1,948. A larger growth towards the median line (ML) could be activated by a bullish closure above the 61.8% level.