Gold rallied today and reached an important resistance area, well see what will happen in the upcoming days because only a valid breakout above a static resistance will confirm a larger increase in the upcoming period. Price moves in range on the short term, remains to see if this will be a consolidation or a distribution movement. Technically, it is somehow expected to climb much higher on the short term after a failure to reach and retest a very strong dynamic support. Is very important to see what will happen with the USDX in the upcoming period, the index dropped in the last hours and erased the morning gains. The index failed to reach the 95.17 previous high, signaling a minor exhaustion on the short term, the minor consolidation could continue before the index will regain enough directional energy to climb much higher.

The yellow metal increased also because the Aussie and Kiwi have managed to rebound versus the greenback. The Australian MI Inflation Gauge increased by 0.3%, matching the 0.3% growth in the former reading period, while the ANZ Job Advertisements increased by 1.4% after the 0.7% drop in the former reading period. The Kiwi increased even if the New Zealand Inflation Expectations increased only by 2.0%, less versus the 2.1% growth in the former reporting period.

Gold is pressuring the short term 50% retracement level and the long term 38.2% retracement level, a valid breakout above these levels will confirm a further increase . The current rebound is natural after the failure to reach and retest the median line (ML) of the major descending pitchfork and the 61.8% retracement level. Technically, it is somehow expected to climb towards the upper median line (UML) of the major descending pitchfork, this scenario will take shape only if the USDX will drop much deeper in the upcoming weeks, which is less likely. It could reach the mentioned upside target only if the FED will delay the December hike.