- XAU/USD remains bullish post the US inflation figures.
- The upside line represents a potential target.
- The US PPI and Core PPI could have a big impact today.
The gold price rallied after yesterday’s drop, trading at $2,023 while writing. The bias is bullish as the USD is strongly bearish.
Gold remains high as the US inflation data weakened the greenback. The CPI m/m increased by 0.1% compared to the 0.2% expected. CPI y/y was reported at 5.0% below the 5.1% estimated, while the Core CPI increased by 0.4%, matching expectations.
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Today, the Australian data came in better than expected, supporting the XAU/USD’s upside. The Unemployment Rate remained at 3.5% even if the traders expected a potential growth of 3.6%, while Employment Change was reported at 53.0K above the 20.8K estimated. In addition, the UK GDP reported only a 0.0% growth versus the 0.1% growth forecasted.
Later, the US PPI may report a 0.0% growth compared to the 0.1% drop in the previous reporting period, while Core PPI is expected to increase by 0.2% in March after the 0.0% growth in February. The Unemployment Claims indicator will be released as well.
Tomorrow, the US retail sales data and the Prelim UoM Consumer Sentiment represent high-impact events and could move the rate.
Gold price technical analysis: Buyers dominating
Gold came back higher after retesting the uptrend line. The false breakdown signaled exhausted sellers and triggered a new bullish momentum. It is almost to hit yesterday’s high of $2,028, representing an upside obstacle.
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Taking out this resistance activates further growth toward the Rising Wedge’s upside line and up to the weekly R1 (2,043). The bias remains bullish as long as it stays above the uptrend line. The Rising Wedge pattern is seen as a bearish formation, but this is far from being confirmed. Only a valid breakdown below the uptrend line and a new lower low activates a downside movement.
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