The Gold price has managed to increase today and looks motivated to embrace new highs in the coming period. The price has increased as the USD has depreciated versus the other major currencies, except versus the Cable, the gold has erased the Friday’s losses and has climbed above the 1184.96 last week high. The price has decreased on Friday only to test a broken horizontal resistance and now is expected to increase further, most likely will be attracted by a major confluence area, should increase as the USDX may drop further on the short term
The price will be driven higher by the technical factors, today we had a poor economic calendar, tomorrow we have some data that could bring life on the Gold price, the Australian Bureau of Statistics will release the Australian Retail Sales, the indicator could increase by 0.4% in November. The Aussie could increase further if the Chinese data will come in line with expectations of better, the Chinese CPI could increase by 2.2%, while the PPI could increase by 4.6%, the data could boost the Aussie, so the Gold could increase as well on the short term.
The price has increased after the retest of the 61.8% retracement level, could climb to reach the first upside target from the 150% Fibonacci line (ascending dotted line), actually could be attracted by the confluence area formed at the intersection between the 150% Fibonacci line and the median line (ML) of the major descending pitchfork, we have there also the 50% retracement level, remains to see what will happen when will touch this resistance area, but till then the price is expected to increase as the dollar may drop deeper versus its rivals on the short term.
The current rebound was expected after the failure to close right on the lower median line (LML) of the major descending pitchfork, has failed also to retest the downside obstacle, signalling that the bulls could take the lead again and could drive the price higher.
I want ti remind you that the price remains under pressure as long as is trading below the median line (ML) of the descending pitchfork.