- The bias is bullish despite minor retreats.
- The US data could bring sharp movements later today.
- Taking out the dynamic resistance confirms further growth.
The gold price extended its growth after the US inflation figures. The metal is trading at $1,960 at the time of writing. It has marked a daily high of around $1,963.
The bias is bullish, so further growth is natural. The XAU/USD accelerated its growth as the United States reported lower inflation.
The Consumer Price Index reported a 0.2% growth in June versus the 0.3% growth estimated. CPI y/y came in at 3.0% less than the 3.1% growth forecasted, while the Core CPI registered a 0.2% growth compared to the 0.3% growth estimated.
Furthermore, the BOC delivered a 25-bps hike as expected, while the RBNZ left the monetary policy unchanged.
Today, the UK GDP, Construction Output, Index of Services, and Manufacturing Production came in better than expected, while Industrial Production and Goods Trade Balance reported poor data.
Later, the US PPI may report a 0.2% growth.
Core PPI is expected to register a 0.2% growth, while Unemployment Claims could jump to 251K. Positive US data should lift the greenback and could send the XAU/USD down in the short term.
Gold Price Technical Analysis: Dynamic Resistance
As you can see on the hourly chart, gold registered a strong rally after failing to stay below the median line (ml).
It has ignored the weekly R2 (1,953) and almost hit the upper median line (uml). This represents a dynamic resistance. False breakouts above this upside obstacle or failing to hit this obstacle may announce a new sell-off.
Taking out the dynamic obstacle activates further growth. The weekly R3 (1,971) is seen as a potential static resistance. Technically, consolidating above the R2 (1,953) should announce more gains ahead.
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