The yellow metal dropped significantly and resume the corrective phase. Is trading in the red even if buyers have stepped in and have pushed it above the $1306.50 per barrel. Gold decreased as the USD has managed to rebound and to recover versus all its rivals.
The USDX registered an amazing jump and is trading above the 93.30 level. The dollar index is almost to reach and retest a strong dynamic resistance, where he can find resistance again. A further USDX’s increase will weaken the Gold even more.
Gold increased a little right after the United States data was released, but fundamentally should drop much deeper as the figures have come better than expected.
The Unemployment Claims increased from 235K to 236K in the previous week, has come in better versus the 237K estimate, while the Core PCE Price Index rose by 0.1%, matching expectations and the 0.1% growth in the former reading period.
The Personal Spending rose by 0.3%, less versus the 0.4% estimate, but the Personal Income surged by 0.4%, exceeding the 0.3% estimate.
You can see that the price has found strong resistance right below the warning line (WL1) of the major descending pitchfork and now has tried to retest the 23.6% retracement level, which represents an important static support.
The perspective remains bullish despite the minor decrease, technically is expected to climb much higher in the upcoming period after the breakout from the extended sideways movement.
