The yellow metal tries hard to take out a very strong dynamic resistance. It is very important to see what will happen with the USDX in the upcoming days. The dollar index maintains a bearish perspective on the short term, so a further drop will help the Gold to increase further.
Gold has shown some exhaustion signs on Thursday when it has plunged aggressively. The drop has taken place only because the USDX has bounced back.
Price continues to move in range on the short term, so you should wait for a valid breakout from this extended range. As you already know, the perspective remains bullish on the daily chart. We could see a further increase if the USDX will resume the yesterday’s bearish candle.
Gold decreased a little in the last hours and erased the earlier gains. Maybe the traders were disappointed by the Chinese economic data. The Aussie dropped as well in the morning and dragged the Gold down as well.
The Chinese GDP rose by 6.8%, matching expectation and the 6.8% growth in the former reading period, the Fixed Asset Investment surged by 7.5%, but less versus the 7.7% estimate and compared to the 7.9% growth in the former reading report. The Industrial Production increased only by 6.0% in March, less versus the 6.4% estimate, while the Retail Sales have increased by 10.1%, more versus the 9.7% estimate and compared to the 9.7% growth in the previous reading period.
Gold is traded at $1345 per ounce, but much below the 1350 yesterday’s high. Price is pressuring the outside sliding line (sl) of the red descending pitchfork. Only a valid breakout above the 1357 static resistance will confirm further upside movement.
It continues to stay near the sliding line signaling a bullish pressure on the short term. You should be careful in the afternoon as the United States will publish high impact data, which could shake the price.