Sumary of Gold Price Forecast: XAU/USD Breakout Holds Through CPI – FOMC on Deck:
- While last June through August saw a stern topside run develop, Gold prices topped on August 7th and then spent nine months in a bearish channel..
- As highlighted regularly in these weekly Gold forecasts, that channel, when taken with the prior trend, was showing as a bull flag formation..
- As it became more obvious that the Fed was not looking to adjust rates in the face of that rising inflation, Gold prices popped again to breakout of the bull flag formation in mid-May..
- Gold Weekly Price Chart Gold Support Test at Prior Resistance Around NFP Last week brought the first significant test of the bullish theme since the breakout took place in May, and this was largely based around the NFP release on Friday..
- Buyer initially breached that on May 17 and a couple days later, there was a quick test of that same zone as support before prices popped up to a fresh high..
- But – last week – ahead of Non-farm Payrolls, prices again dipped down for a quick support test in this same zone….