Gold is trading in the red right now after the failure to stay above a dynamic resistance. Price increased significantly in yesterday’s trading session as the USD has decreased a little versus its rivals. The dollar was forced to retreat a little as the USDX has reached a very strong dynamic resistance and it has decreased to test and retest a dynamic support.

A USDX’s further increase will help the USD to increase further versus all its rivals, so the yellow metal could drop much deeper again.

You should be careful because we may have a high volatility in the afternoon as the US is to release high impact data. The Retail Sales could increase by 0.6%, more versus the 0.1% growth in the former reading period, while the Core Retail Sales could increase by 0.5% after the 0.1% drop in the former reading period.

The Unemployment Claims could decrease to 113K in the previous week, which is good for the USD. The Import Prices could increase by 0.1%, the Empire State Manufacturing Index could slip from 21.1 to 19.9 points, while the Philly Fed Manufacturing Index could decrease to 20.1, from 22.2 points.

The Fed Chair Powell speech could shake the markets, so maybe it will be better to stay away during the US data release.

Gold has dropped and has erased the morning gains. Price has increased a little, the Australian Employment Change increased from 7.8K to 32.8K, beating the 19.9K estimate, while the Unemployment Rate has remained steady at 5.0%.

You can see that the rate has increased after the failure to retest the inside sliding line (sl). It has climbed above the sl3, but it has failed to close there till now. Personally, I still believed that the perspective will remain bullish as long as the rate stays above the inside sliding line (sl).

Personally, I believe that only a valid breakout above the 150% line of the descending pitchfork and above the 50% and the sl2 of the ascending pitchfork it will really announce a further and a broader increase.