- Gold price surged to multi-month highs after Fed Chair Jerome Powell's speech.
- XAU/USD faces crucial resistance at $1,987, with potential profit-taking driving a corrective phase.
- Canadian retail sales data holds significance for the gold price today.
The gold price (XAU/USD) has extended its rally, reaching a fresh multi-month high around $1,985. The precious metal maintains a bullish bias, but profit-taking may trigger a near-term correction.
Fed Chair Powell's Speech and Economic Data
Fed Chair Powell's speech at the Economic Club of New York Luncheon provided a positive outlook for gold. The US Unemployment Claims and Existing Home Sales outperformed expectations, while the CB Leading Index and Philly Fed Manufacturing Index disappointed.
Chinese and UK Data
Chinese economic data released today, including the 1-year and 5-year Loan Prime Rates, met expectations. In the UK, retail sales reported a 0.9% decline and Public Sector Net Borrowing improved.
Canadian Retail Sales Data
The Canadian retail sales figures, scheduled for release later today, are expected to show a 0.1% drop. Core Retail Sales may decline 0.1%, potentially influencing the gold price.
Technical Analysis: Approaching Resistance
Technical Outlook:
- Gold price is strongly bullish, approaching a key resistance zone at $1,987.
- A bullish trendline supports the rally, with immediate support at $1,972.
- A break below $1,972 could trigger a corrective phase towards the trendline.
Chart:
Key Levels:
| Level | Significance |
|---|---|
| $1,987 | Major resistance |
| $1,972 | Immediate support |
| Trendline | Downside target |
Bullish Scenario:
- A break above $1,987 could extend the rally towards higher levels.
- Traders can consider buying XAU/USD above $1,987 with a stop-loss below the trendline.
Bearish Scenario:
- A break below $1,972 could trigger a corrective phase.
- Traders can consider selling XAU/USD below $1,972 with a stop-loss above $1,987.