XAU/USD has registered a sharp movement after the US inflation data release. It has decreased a little but now is trading in the green at 1,814.08 below 1,817.26 today’s high. It has decreased as much as 1,798.67 today where it has found strong demand.
The US CPI and Core CPI have reported better than expected data, both indicators increasing by 0.9% versus 0.5% and 0.4% expected. The DXY has rallied, that’s why the price of gold has decreased a little. The index has slipped lower, so the price of gold takes advantage of this situation.
Gold has managed to stay above the ascending pitchfork’s median line (ML) which means that the bias is still bullish. It’s trapped within a minor range, making an upside breakout from this pattern confirms upside continuation.
Jumping and closing above 1,818.54 high could really activate further growth in the upcoming period. Also, closing this candle around the current levels, a bullish engulfing, could attract more buyers.
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