- Data for the US and Canada should move the rate today.
- A new higher high activates further growth.
- The bias remains bullish as long as it is above the lower median line (LML).
The price of gold is trading in the green at $2,037 at the time of writing. The precious metal is trying to continue its move to the upside. The US dollar is still bearish, so a deeper decline can be expected.
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This scenario helps the KSAU/USD buyers to increase. However, the fundamentals could shake up the price today. In the short term, the yellow metal fell slightly only because the US CB Consumer Confidence and Existing Home Sales were better than expected in the last trading session.
Today, the US will release high-impact data, such as final GDP, which could once again announce growth of 5.2%, and the jobless claims indicator, which is expected to come in at 214,000 in the final week, up from 202,000 in the previous reporting period. Also, data on the final GDP price index, the Philly Fed manufacturing index and the leading CB index will be released.
The yellow metal remains under strong upward pressure despite temporary pullbacks. Canadian retail sales data could weigh heavily on KSAU/USD later.
Tomorrow, the US releases Revised UoM Consumer Sentiment, New Home Sales, Durable Goods Orders, Core Durable Goods Orders and Core PCE Price Index.
Gold Price Technical Analysis: Flag Pattern
From a technical point of view, KSAU/USD pulled back a bit after failing to reach the $2,047 mark in its last attempt. However, the short-term correction appears to be over. Price has developed a flag pattern, which is seen as a formation for an upward continuation.
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This causes flag resistance, so we must wait for confirmation before taking action. Also, from my previous analysis, you knew that the yellow metal was trapped between $2,015 and $2,047.
The bias remains bullish as long as it is above the lower median line (LML). Activating the flag formation and making a new higher high, a valid break through 2,047 confirms further upside.
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