Home Gold Price Retaining Bullishness Ahead of US Inflation Figures

Gold Price Retaining Bullishness Ahead of US Inflation Figures

  • XAU/USD is bullish as long as it stays above the uptrend.
  • The upper median line (uml) stands as a potential target.
  • The US inflation figures should shake the price on Wednesday.

The gold price dropped slightly, but the bias remains bullish. The metal is trading at $2,002 at the time of writing, far above today’s low of $1,988.

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After its strong growth, a temporary drop was natural. Fundamentally, the XAU/USD dropped slightly as the USD rallied on Friday after positive US figures. The Non-Farm Employment Change came in at 236K versus the 228K expected. The unemployment rate dropped from 3.6% to 3.5%, while Average Hourly Earnings rose by 0.3%.

Today, the US will release the Final Wholesale Inventories, expected to report a 0.2% growth. In addition, the FOMC Member Williams Speaks could also have an impact.

Still, the most important event of the week is the US inflation figures publication. The CPI m/m should report a 0.2% growth in March versus the 0.4% growth in February, while Core CPI may register a 0.4% growth versus the 0.5% growth in the previous reporting period. Furthermore, the FOMC Meeting Minutes, BOC, and the US retail sales should move the rate in the short term.

Gold Price Technical Analysis: Corrective Downside

Gold price

From the technical point of view, the XAU/USD is bullish as long as it stays above the uptrend line. It was almost to hit the descending pitchfork’s median line (ml), which also represents a downside obstacle.

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Gold has jumped above the weekly pivot point of 1,996 and is fighting hard to return higher. It challenges the $2,000 psychological level, so stabilizing above this level may announce a potential strong upside movement.

Testing the near-term support levels and registering only false breakdowns may result in an upside continuation. The descending pitchfork’s upper median line (uml) represents an upside target and obstacle. The upside scenario could be invalidated only by a valid breakdown below the uptrend line and under the median line (ml).

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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.