- The bias remains bullish despite the current selloff.
- The removal of the downtrend line activates a new bullish movement.
- US data could bring some measures tomorrow.
The price of gold is trading in the green at $2,171 at the time of writing. Dragoceni seems stubborn enough to post a new top above $2,200.
In the short term, gold pulled back a bit after hitting a new all-time high of 2,222. KSAU/USD also fell as the dollar made a huge comeback on Friday. The yellow metal turned upside down after the FOMC press conference.
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However, the bias remains bullish in the medium to long term despite the current jitters.
Today, new home sales in the US could jump from 661,000 to 675,000. This scenario should lift the dollar. Bad US data could boost the price of gold.
Tomorrow the US data could really shake up the markets. CB consumer confidence is expected to jump from 106.7 to 106.9. Durable goods orders may post a 1.2% increase, while core durable goods orders could post a 0.4% increase.
In addition, the S&P/CS Composite-20 HPI, HPI and Richmond Manufacturing Index data should also be released. Positive numbers in the US should help the dollar.
Technical analysis of gold price: Down Channel
As you can see on the hourly chart, XAU/USD has extended its rally after breaking out of a falling wedge pattern. Now the metal has fallen slightly, forming a flag formation, which is a bullish continuation.
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Price triggers a descending line, which represents dynamic resistance. The removal of this obstacle can confirm that the pullback is complete and the price could return higher.
On the contrary, a false break through this dynamic barrier indicates a deeper decline towards the $2,146-49 support zone.
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