The Gold price has increased sharply today and has managed to resume the latest gains, is strongly bullish on the short term and could climb much higher if the US dollar index will fall further on the short term. The Gold has taken advantage of the USD’s poor shape and has jumped much higher on the short term, technically should increase further, the rate could be attracted by a major upside target.

The price has decreased a little right before the United States economic data to be released, but has increased again as the figures have come in mixed, the greenback has received support only from the Revised UoM Consumer Sentiment, which has beaten the economists estimate. The Gold could increase further because the dollar has taken a hit from the New Home Sales data, which has disappointed, the indicator was reported at 555K, much lower than the 575K estimate.

If you’ll take a look on the NZD/USD and on the AUD/USD you can say that the Gold has increased somehow surprisingly because the currency pairs have dropped significantly today even if the USDX has touched new lows.

The rate has increased significantly today and has managed to touch the lower median line (lml) of the former ascending pitchfork, has climbed much above the 38.2% retracement level and looks determined to reach fresh new highs. However, the rate could find temporary resistance at this level and could decrease a little to test and retest the 38.2% retracement level before will increase further.

I want to remind you that the major upside target remains at the upper median line (UML) of the major descending pitchfork, could be attracted by the confluence area formed at the intersection between the upper median line (UML) with the lower median line (lml) of the ascending pitchfork if will fail to take out the resistance from the lower median line (lml) of the major ascending pitchfork.

The short term corrective phase looks completed and now the rate is fighting hard to resume the medium term upside movement, will do this only if will have enough energy to escape from the descending pitchfork’s body.