08.04.202218:35 Forex Analysis & Reviews: Gold new bullish momentum

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The price of gold rallied in the last hours as the Dollar Index has retreated. XAU/USD is trading at the 1,942 level at the time of writing below 1,948 today's high. In the short term, the yellow metal is moving sideways, that's why we still have to wait for a clear direction.

Gold remains attractive for buyers despite the last downside movement as the inflationary pressure remains high. Also, the war in Ukraine is far from being over, so the global economy could suffer if this situation continues. Also, the US and UK are to release their inflation data next week, maybe this is the reason why the XAU/USD has started to move. Also, the RBNZ, ECB, and BOC could bring high volatility in the coming week.

XAU/USD Range Movement!

XAU/USD found strong support on the 1,916 level and now is almost to hit 1,949 static resistance. Actually, in the short term, the price of gold is trapped between these levels. Gold could resume its growth as long as it stays within the ascending pitchfork's body.

You can see that XAU/USD tested and retested the ascending pitchfork's lower median line (lml) which stands as a dynamic support.

XAU/USD Forecast!

Staying above the lower median line (lml) and making a valid breakout above the 1,949 obstacles could activate an upside continuation and could bring new long opportunities. The ascending pitchfork's median line (ml) is seen as a potential upside target.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.