19.07.202317:27 Forex Analysis & Reviews: Gold: flag pattern in progress

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The price of gold retreated a little after reaching yesterday's high of 1,984. Now, it is trading at 1,970 at the time of writing. The yellow metal turned to the downside and it seems very heavy in the short term as the Dollar Index rallied even if the US reported poor data.

You already know from my analyses that personally, I'm using the negative correlation between the USD and XAU/USD. The Dollar Index was oversold, that's why the USD appreciated in the short term. Fundamentally, the Housing Starts and Building Permits came in worse than expected. Yesterday, the US reported poor data as well. Tomorrow, the US is to release the Unemployment Claims, Philly Fed Manufacturing Index, and Existing Home Sales. Moreover, the Australian Employment Change and Unemployment Rate should have an impact as well.

XAU/USD Strong Sellers!

XAU/USD dropped a little and it has developed a flag pattern, a minor down channel which could represent a bullish formation.

Now, it is challenging the upper median line (uml), the R1 (1,975), and the flag's support. In my opinion, as long as it stays above the 1,967 static support, XAU/USD could extend its growth.

XAU/USD Forecast!

Jumping and closing above the minor downtrend line and above the immediate high of 1,979 activates further growth and is seen as a new buying signal.

Dropping and closing below 1,967 activates more declines.

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