The XAU/USD could jump higher if it stays above the uptrend line. A new higher high could bring new long opportunities. The UK and the Canadian inflation data could bring sharp movements. The price of gold dropped in the short term after reaching the 1,857 level. Technically, a temporary drop was natural after its last rally. The price action developed a down-channel pattern representing an upside continuation pattern. -Are you interested in learning about forex live calendar? Click here for details- In the short term, the yellow metal seems heavy as the Dollar Index tries to come back higher. When the DXY rallies, the XAU/USD could slip lower or move sideways. Gold reached a strong confluence area, so it remains to see how it will react. Fundamentally, the XAU/USD rallied after the FOMC decision to increase the Federal Funds Rate by 0.75%. Today, the Canadian retail sales data also brought some gold volatility. The Retail Sales indicator reported a 0.9% growth versus the 0.8% expected, while the Core Retail Sales rose by 1.3% compared to 0.5%. Later, the US Existing Home Sales are expected to be at 5.40M below 5.61M in the previous reporting period. Tomorrow, the price of gold could register sharp movements as the UK and Canada release the inflation figures. The UK CPI is expected to report a 9.1% growth in May versus 9.0% in April. The Canadian Consumer Price Index could register a 1.0% growth versus only 0.6% in the previous reporting period. Get FREE Forex Signals Now! Gold price technical analysis: Flag pattern From the technical point of view, the XAU/USD developed a down channel, a flag formation that could represent a bullish pattern. In the short term, it’s trapped between 1,846 and 1,833 levels. Escaping from this range could bring new opportunities. Now, it has found support right on the up trendline. -Are you interested in learning about forex signals? Click here for details- The price reached the confluence area formed at the intersection between the 1,833 and the uptrend line. A false breakdown through this confluence area could signal new bullish momentum. Still, a larger growth could be activated only by a valid breakout above the 1,846. On the other hand, a valid breakdown through the confluence area, a new lower low could activate more declines. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money 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. View All Post By Olimpiu Tuns Commodities share Read Next USD/CHF Price Consolidating Around 0.9650 Ahead of Powell’s Testimony Saqib Iqbal 7 months The XAU/USD could jump higher if it stays above the uptrend line. A new higher high could bring new long opportunities. The UK and the Canadian inflation data could bring sharp movements. The price of gold dropped in the short term after reaching the 1,857 level. Technically, a temporary drop was natural after its last rally. The price action developed a down-channel pattern representing an upside continuation pattern. -Are you interested in learning about forex live calendar? Click here for details- In the short term, the yellow metal seems heavy as the Dollar Index tries to come back higher. When… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.