The price of gold rebounded and recovered after yesterday's minor sell-off. It's trading at 1,901 at the time of writing and it seems determined to hit new highs if the Dollar Index drops deeper. You knew from yesterday's analysis that Gold announced a potential reversal.
Today, the services and manufacturing figures should move the rate. The Eurozone, German, and UK data should bring action in the European session. Later, the US Flash Manufacturing PMI is expected at 48.9 points versus 49.0 points in the previous reporting period, while Flash Services PMI could be reported at 52.1 points in August and below 52.3 points in July. Furthermore, the US New Home Sales and the Canadian retail sales data could have an impact as well. Poor economic data should lift XAU/USD. In my opinion, only better-than-expected US data could force the price to drop again.
XAU/USD retested the ascending pitchfork's lower median line (LML) and now it has reached the 1,903 static resistance again. As long as it stays above the LML, Gold could extend its upwards movement. Still, only a valid breakout through 1,903 activates further growth.
XAU/USD Outlook!
A bullish closure above 1,903 could be seen as a buying signal as XAU/USD may approach and reach new highs.
