The yellow metal increased in the morning and tries to stay in the green territory. Price is pressuring an important horizontal resistance and seems determined to reach the 1297 yesterday’s high. Price increase as the USDX is still under selling pressure on the short term. The Gold has taken advantage of the weak dollar and has managed to recover after the last corrective phase.
Gold should reach the $1300 per ounce if the United States data will disappoint in the afternoon. You should be careful because we may have some volatility in the US session as the United States is to release the CPI, Core CPI, Core Retail Sales and the Retail Sales data.
The greenback needs a bullish spark from the US economy to be able to increase again, the yellow metal will slip lower if the USDX will start a bullish momentum.
Gold has managed to climb much above the warning line (WL1) of the ascending pitchfork and now if challenging the 23.6% retracement level. A larger rebound will be confirmed only after a valid breakout above the warning line (WL1) of the major descending pitchfork, while a rejection from here and a failure to reach the mentioned dynamic resistance will send the rate tumbling.
The current rebound is natural after the false breakdown below the 61.8% retracement level and below the sliding parallel line (SL).
