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  • The bias is bullish in the short term. Only better-than-expected US data could change the sentiment.
  • XAU/USD could continue to move sideways in the short term.
  • The US economic figures should bring some action later today.

The gold price jumped again as the USD depreciated after yesterday’s US data. The metal is trading at $1,997 at the time of writing.

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Gold seems determined to approach new highs if the US reports poor data later today. XAU/USD rallied as the US CB Consumer Confidence disappointed yesterday.

Today, the yellow metal retreated slightly as the Australian Consumer Price Index rose 1.4% versus the 1.3% growth estimated. The CPI y/y and Trimmed Mean CPI came in worse than expected.

The US economic data could have a big impact later. Core Durable Goods Orders are expected to register a 0.2% growth, while Durable Goods Orders may report a 0.7% growth in the last month versus a 1.0% drop in the previous reporting period. Furthermore, Prelim Wholesale Inventories and Goods Trade Balance indicators will also be released.

As you already know from my analysis, I’m using the negative correlation between the USD and XAU/USD. So, if the US data comes in better than expected, the greenback should appreciate it versus its rivals. This scenario could force gold to drop.

Gold price technical analysis: Upside pressure

Gold price
Gold price chart

XAU/USD came back above the weekly pivot point of $1,989. However, it has found resistance around the $2,000 psychological level.

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After its strong rally, a temporary drop is natural. As long as it stays above the pivot point, the yellow metal can still reach the descending pitchfork’s upper median line (UML). This stands as a dynamic resistance.

As you can see on the 4-hour chart, the rate moves somehow sideways between $2,015 and $1,969 levels. Most likely, XAU/USD should extend its sideways movement. Escaping from this pattern should bring a strong upside or downside swing.

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