The gold price has shown signs of breaking out of its downtrend line, but it appears to be overbought as it struggles to reach previous highs. The upcoming Canadian inflation figures are expected to have an impact on the rate, with the dollar’s growth potentially negatively affecting gold prices.
Fundamentally, the XAU/USD has attempted to resume its growth, and the US Manufacturing Sales, Wholesale Sales, and BOC Business Outlook Survey could move the markets.
From a technical standpoint, the gold price has found support around $2,015 and has broken above the downtrend line. However, it is facing resistance near Friday’s high. The weekly pivot point of $2,041 and the broken downtrend line serve as key support levels.
Additional insights:
1. The US inflation report has increased the value of the US dollar, which could negatively impact the price of gold as investors look for safe-haven assets.
2. The upcoming Canadian inflation figures could provide further direction for the XAU/USD.
3. Despite minor retreats, the gold price could potentially jump higher if it remains above key support levels. This indicates a degree of market resilience and potential for further upside movement.
