Gold is strongly bullish and seems motivated to approach and reach new highs, is trading above the 1267 level and mot likely will try to reach the $1295  per ounce in the next weeks. Is moving sideways, but with a bullish perspective, could breakout from the minor range and could climb much higher.

Is located in the buyer’s territory, but is not a good moment to go long again, we’ll have a buying opportunity only if will come down to retest the broken resistance levels (resistance has turned into support).

The Dollar plunged after the United States data was released, the figures have come in mixed, but the greenback wasn’t inspired at all, the Advance GDP rose by 2.6% in the second quarter, beating the 2.5% estimate  and the 1.4% increase the first quarter, but unfortunately the Advance GDP Price Index increased only by 1.0%, less compared to the 1.3% estimate and versus the 1.9% estimate.

Moreover the Employment Cost Index surged by 0.5% in Q2, less versus the 0.6% estimate and versus the 0.8% in Q1 , the revised UoM Consumer Sentiment has come in better than expected, was reported at 93.4 points, higher than the 93.2 estimate, while the Revised UoM Inflation Expectations increased by 2.6%, but the greenback wasn’t impressed at all.

The yellow metal could be attracted by the confluence area formed at the intersection between the 38.2% retracement level with the 50% Fibonacci line (descending dotted line) and with the median line (ml) of the minor ascending pitchfork.

Should jump higher after the breakout above the sliding line (SL) of the descending pitchfork, the bullish momentum was expected after the false breakdown below the 50% retracement level. Could approach the 23.6% retracement level, this represents the minor range resistance.

We have an important upside target also at the first warning line (WL1) of the major descending pitchfork, resistance can be found at the upper median line (uml) of the minor ascending pitchfork and at the lower median line (LML) of the major blue ascending pitchfork.