Gold posted little gains today and tries to resume the yesterday’s bullish candle. It is still premature to talk about a larger upside movement as long as the rate remains trapped below some very important resistance levels.

The yellow metal has increased, even if the USDX has managed to rebound after the last minor retreat. The Kiwi and Aussie have managed to increase today versus the USD, that’s why the Gold has jumped higher.  AUD/USD and the NZD/USD are trapped below some very, very important resistance levels, so the perspective remains bearish on these pairs. The yellow metal could drop again if these pairs will drop further in the upcoming period.

Gold increased despite some poor data from China in the Asian session. The GDP rose only by 6.5%, less versus the 6.6% estimate, the Fixed Asset investment increased by 5.4%, beating the 5.3%, while the Industrial Production has increased by 5.8%, less versus the 6.0% estimate.

The Retail Sales have increased by 9.2%, beating the 9.0% and the 9.0% growth in the former reading period, while the Unemployment Rate was reported at 4.9%, lower versus the 5.0% in the previous reporting period.

Price has managed to climb above the inside sliding line (sl1) an above the downside 50% Fibonacci line of the ascending pitchfork and now is struggling to reach the upper median line (uml) and the first warning line (WL1) of the descending pitchfork.

Only a valid breakout above these levels will really confirm a further and a larger upside movement. Resistance can be found at the 150% Fibonacci line of the descending pitchfork as well.

On the other hand, a significant drop could be confirmed only if the rate will drop and it will make a valid breakdown below the inside sliding line (sl) of the ascending pitchfork.