FX.co ★ Gold: bullish continuation pattern

The price of gold is trading in the green at 1,929 at the time of writing. The bias is bullish, so further growth is natural. Technically, after such an impressive growth, a correction was natural. The USD's short-term depreciation helped XAU/USD to hit new highs.

Fundamentally, Gold remains bullish as the Canadian and New Zealand CPI reported lower-than-expected inflation. Still, an upside continuation needs confirmation as the US retail sales data came in better than expected. In addition, the US Industrial Production and Capacity Utilization Rate reported positive data as well.

XAU/USD Rising Wedge Invalidated!

As you can see on the H1 chart, the price action invalidated a potential Rising Wedge pattern, signaling an upside continuation.

Now, it's trapped between 1,932 and 1,908 levels. XAU/USD tried to retest the upside line and the 1,908 support in the last attempt but it failed, indicating strong upside pressure.

XAU/USD Forecast!

Jumping, closing, and stabilizing above 1,932 validates further growth and represents a bullish signal.