- Removal of the midline activates further growth.
- US manufacturing and services data should bring big action today.
- The BPC press conference could change the mood.
The price of gold is trading in the green at $2,033 at the time of writing. The metal appears determined to hit new highs as the US dollar loses momentum.
In the short term, KSAU/USD remains sideways. So we should wait for a clear direction.
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The BOJ left monetary policy unchanged yesterday, while New Zealand’s consumer price index rose by 0.5 percent as expected.
Today, manufacturing and services data and the BOC should move the markets. German and Eurozone service and manufacturing sectors reaffirmed contraction, while the UK PMI signaled further expansion after being reported at 53.8 points above expectations of 53.1.
Later, the US Flash Manufacturing PMI is expected to fall from 47.9 points to 47.6 points, in line with further contraction, while the Flash Services PMI could remain at 51.4 points for the second month in January.
Also, the Bank of Canada should keep the overnight rate at 5.00%. However, the BPC Press Conference, BPC Rate Statement and BPC Monetary Policy Report could change the mood. Tomorrow, the ECB and US Advance GDP are high-impact events.
Gold Price Technical Analysis: Bullish Momentum
From a technical point of view, KSAU/USD looks indecisive in the short term. Price action has developed a symmetrical triangle, so just breaking out of this pattern brings us new opportunities.
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The yellow metal found demand above $2,020. Now he is trying to approach new heights. I drew ascending pitchforks, hoping to capture the upward movement. Price is trapped between the middle and lower middle lines (ml) lines (LML).
A valid break through the triangle resistance and above the midline confirms higher upside and can be seen as a long opportunity.
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