The Gold has increased to resume the Friday’s bullish candle, we’ll see what will happen in the upcoming days because is located below a major confluence area. Has jumped higher as the dollar index slides further, will increase further if the dollar will continue to depreciate versus its rivals.

Maybe will be better to stay away until we’ll have a fresh trading signal, will be very important to see what will happen on the USDX, a further drop will send the dollar much lower versus its rivals, so the Gold could climb much higher. Only a USDX’s rebound will force the yellow metal to decrease again on the short term, but is premature to say what will happen because the index needs strong support from the United States data because technically remains under massive selling pressure.

Could decrease if will fail to close above the 1265 last week’s high, is bullish on the short term after a false breakdown below a static support level, but as I’ve said higher, remains to see if will have enough directional energy to take out  a major dynamic resistance. We could have some volatility on the gold in the upcoming days, could move significantly on May 25 when we have the OPEC meeting.

Price has increased and now is very close to hit the upper median line (uml) of the major descending pitchfork, we have a major confluence area formed at the intersection between the upper median line (UML) with the 150% Fibonacci line. We’ll see how will react when will hit this area, we could have a larger leg lower if the rate will be rejected by this resistance, a retest of the UML will confirm once again the dynamic resistance.

Only a valid breakout above the upper median line (UML) will confirm a further increase, but technically is somehow expected to drop again because the rebound could be considered to be only a retest of the downside line of the Rising Wedge, was expected to drop much more after the failure to stay above the UML and after the breakout from the Rising Wedge pattern.