- The bias is bearish as long as it stays within the descending pitchfork’s body.
- The US data should be decisive today.
- A new higher high activates an upward movement.
The gold price is trading in the green at $2,319 at the time of writing. The precious metal is struggling to come back higher after the last sell-off.
However, the downside pressure remains high as the US dollar stays bid. Moreover, the Australian CPI q/q reported a 1.0% growth versus the 0.8% growth estimated, while the CPI y/y rose by 3.5%, exceeding the 3.4% growth forecasted.
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Gold is in a corrective phase, and it could extend it. Even though Canadian Retail Sales reported a 0.1% drop versus a 0.1% growth estimate, while Core Retail Sales registered a 0.3% drop, the traders expected a 0.0% growth.
Also, the US Durable Goods Orders came in better than expected yesterday, while Core Durable Goods Orders disappointed a little. Today, the US economic data should have a significant impact. The Advance GDP may announce 2.5% growth after the 3.4% growth in the previous reporting period. Unemployment Claims could jump from 212K to 214K, while Pending Home Sales indicator may report a 0.3% growth.
In addition, the Advance GDP Price Index, Goods Trade Balance, and Prelim Wholesale Inventories figures will also be published.
Gold Price Technical Analysis: Retesting Broken Level
The gold price dropped as low as $2,291 in the short term, where it found demand again. In the short term, the price moves sideways between this new low and the $2,334 level.
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The metal has failed to reach the median line (ml) of the descending pitchfork and the weekly S2 (2,284), signaling exhausted sellers. Still, as long as it stays within the descending pitchfork’s body, the bias remains bearish.
False breakouts through this upside obstacle may announce a new sell-off. Only taking out the upper median line (uml) and making a new higher high could activate an upward movement.
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