- The XAU/USD maintains a bullish bias as long as it stays above $1,810.
- The US data could have an impact later today.
- A new higher high activates further growth.
The gold price is trading in the red at $1,814 at the time of writing. The yellow metal seems exhausted in the short term as the USD rebounded and appreciated versus its rivals.
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Fundamentally, the Canadian Consumer Price Index reported a 0.1% growth in November versus the 0.0% growth expected but below the 0.7% growth in the previous reporting period.
In addition, the US CB Consumer Confidence came in better than expected. The economic indicator was reported at 108.3 points versus the 101.0 expected.
Today, the UK reported mixed data. However, I don’t think that had an impact on Gold. Later, the US data could bring more action. The Final GDP is expected to report a 2.9% growth, while the Unemployment Claims could be reported at 221K in the previous week compared to 211K in the previous reporting period. Moreover, the CB Leading Index and the Final GDP Price Index data will also be released.
Tomorrow, the Canadian GDP and the US Core PCE Price Index are high-impact events. The US is to release the Durable Goods Orders, Core Durable Goods Orders, Personal Income, Personal Spending, New Home Sales, Revised UoM Consumer Sentiment, and Revised UoM Inflation Expectations as well.
Gold price technical analysis: Sideways movement
As you can see on the hourly chart, the XAU/USD found resistance at the weekly R1 (1,820), which is now moving sideways. It’s trapped between the $1,810 key support and the $1,824 static resistance. After taking out the 150% dynamic resistance, the price was expected to rise. Now, the 150% Fibonacci line represents dynamic support.
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The bias remains bullish as long as it stays above $1,810. Dropping below this static support could announce a deeper drop in the short term. An upside continuation could be confirmed by a new higher high after making a valid breakout above $1,824.
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