FX.co ★ Gold: swing higher underway

The price of gold rallied and now is located at 1,927 at the time of writing. It has increased by 1.55% from yesterday's low of 1,901 to 1,930 today's high. It has edged higher as the Dollar Index retreated a little. Technically, the price action signaled a larger rebound.

Fundamentally, the Chinese Industrial Production, Retail Sales, and Unemployment Rate came in better than expected in the morning. Earlier, the US Empire State Manufacturing Index Capacity Utilization Rate and Industrial Production came in better than expected. Still, XAU/USD received a helping hand from the US Prelim UoM Consumer Sentiment, which came in worse than expected.

XAU/USD 1,930 Resistance!

From the technical point of view, XAU/USD escaped from a down channel signaling a new leg higher. Now, it is challenging the weekly pilot point of 1,926 and is almost to hit the former high of 1,930.

Still, after its amazing rally, we cannot exclude a temporary retreat. The price could drop a little trying to attract more buyers.

XAU/USD Forecast!

1,930 represents a key resistance. Jumping, closing, and stabilizing above is seen as a buying opportunity with a first target at the median line (ml).