The XAU/USD pair could potentially see a resurgence in its growth trajectory if it manages to remain above the sliding line. A new higher high could trigger further growth for the pair. However, the sentiment surrounding the pair could be influenced by upcoming economic figures from the US and Canada.
Currently, the price of gold is trading at $2,028, with indications pointing towards a potential extension of its growth. The weakening US dollar is expected to contribute to higher highs for XAU/USD.
Despite positive economic data from the US in recent days, the short-term outlook for the greenback is showing signs of being overbought. The upcoming economic data from both the US and Canada could play a significant role in altering the sentiment for the XAU/USD pair.
For instance, the United Kingdom’s Retail Sales reporting a 3.2% drop and the potential growth in Canadian Retail Sales and Core Retail Sales are important factors to consider. Additionally, the US Prelim UoM Consumer Sentiment and Existing Home Sales figures will provide valuable insights into the economic outlook, potentially impacting the movement of XAU/USD.
From a technical perspective, the XAU/USD pair has reached the previous high of $2,029 and is attempting to surpass it. The bullish bias remains as long as the pair stays above the broken dynamic resistance. A confirmation of continued upside momentum would occur with a new higher high, closing above $2,032. The weekly pivot point of $2,041 and the median line are the potential upside targets for the pair.
Overall, the price of gold is set to face crucial junctures based on forthcoming economic data, and technical indicators suggest a potential leg higher for the XAU/USD pair.
Insight: It’s important to note that the economic data from major economies like the US and Canada play a crucial role in determining the direction of the XAU/USD pair. Traders and investors need to closely monitor these figures to assess the potential impact on the pair’s movement. Additionally, technical analysis can provide valuable insights into key support and resistance levels, helping in making informed trading decisions.
