FX.co ★ Gold attracting more buyers

The price of gold is located at 1,850 at the time of writing. After its strong rally, a retreat was natural as the rate tried to attract more bullish energy before jumping higher. XAU/USD extended its growth today as the Dollar Index dropped again.

Fundamentally, the price of gold climbed higher as the US Unemployment Rate and Average Hourly Earnings disappointed on Friday. Now, the traders are shifting their focus to the US inflation figures. The CPI and Core CPI data are due on Thursday. Tomorrow, the US Final Wholesale Inventories and ECB President Lagarde Speaks could bring some action, while the PPI, Core PPI, and FOMC Meeting Minutes should move the rate on Wednesday.

XAU/USD Accumulation!

As you can see on the H1 chart, the rate extended its growth as expected after confirming its breakout through 1,829. You knew from my previous analysis that this scenario is in the cards.

Now, it's trapped between 1,855 and 1,846 levels. The price failed to stabilize below the former low of 1,846 signaled strong upside pressure.

XAU/USD Outlook!

Jumping and closing above 1,855 activates further growth and is seen as a bullish signal.