Home Gold Price Extending the Upside Range, Eying Key US, UK Data

Gold Price Extending the Upside Range, Eying Key US, UK Data

  • The XAU/USD should develop a larger rebound only after taking out the resistance levels.
  • The economic data could shake the markets tomorrow.
  • A new lower low activates more declines.

The gold price maintained a choppy price action during the earlier London session. The metal is trading at $1,877 at the time of writing.

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Fundamentally, the Fed Chair Powell Speaks and FOMC Member Williams Speaks failed to bring a clear direction. Today, the UK Monetary Policy Report Hearings and the EU Economic Forecasts could bring some volatility in XAU/USD. Furthermore, the US Unemployment Claims is expected at 191K in the last week versus 183K in the previous reporting period.

Tomorrow, the economic calendar is filled with high-impact events. The UK Gross Domestic Product may report a 0.3% drop versus the 0.1% growth in the previous reporting period. The Prelim GDP, Goods Trade Balance, Construction Output, Index of Services, Manufacturing Production, and Industrial Production data will also be released.

Moreover, the US Prelim UoM Consumer Sentiment is expected at 65.0 points above 64.9 points in the previous reporting period. The Canadian Unemployment Rate could climb from 5.0% to 5.1%, while Employment Change is forecasted to drop from 104.0K to 15.0K. All these are seen as high-impact events and could shake the markets.

Gold price technical analysis: Upside correction

Gold price

From the technical point of view, the price is located within an up-channel pattern. It continues to move sideways between the $1,886 and $1,861 levels.

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The price action signaled that the downside movement ended, and buyers could take the lead. Still, the yellow metal could extend its sideways movement if it stays under the 23.6% ($1,884) retracement level. Only breaking above the $1,886 and above the channel’s upside line may announce further growth.

On the contrary, false breakouts through the near-term resistance levels may announce a new sell-off. Still, a downside continuation could be activated by a valid breakdown below the former lows. Dropping and closing below $1,861 activates more declines ahead, confirming the current channel as a downside continuation formation.

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Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.