Gold Price Forms Triangle, Eyes on US PMI Data

• Taking out the median line activates further growth.
• The US manufacturing and services data should bring high action today.
• The BOC Press Conference could change the sentiment.

The gold price is trading in the green at $2,033 at the time of writing. The metal seems determined to hit new highs as the US dollar lost momentum.

In the short term, the XAU/USD stays sideways. Hence, we need to wait for a clear direction.

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Yesterday, the BOJ left its monetary policy unchanged, while the New Zealand Consumer Price Index rose by 0.5%, as expected.

Today, the manufacturing and services data and the BOC should move the markets. The German and the Eurozone services and manufacturing sectors confirmed contraction again, while the United Kingdom Flash Services PMI announced further expansion after being reported at 53.8 points above 53.1 expected.

Later, the US Flash Manufacturing PMI is expected to drop from 47.9 points to 47.6 points, conforming to further contraction, while the Flash Services PMI could remain at 51.4 points for the second month in January.

Also, the Bank of Canada should keep the Overnight Rate at 5.00%. Still, the BOC Press Conference, BOC Rate Statement, and BOC Monetary Policy Report could change the sentiment. Tomorrow, the ECB and the US Advance GDP represent high-impact events.

Gold Price Technical Analysis: Bullish Momentum

From the technical point of view, the XAU/USD seems undecided in the short term. The price action developed a symmetrical triangle, so only escaping from this pattern brings us new opportunities.

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The yellow metal has found demand above the $2,020. Now, it tries to approach new highs. I have drawn an ascending pitchfork, hoping to catch an upward movement. The price is trapped between the median and lower median lines (ml) lines (LML).

A valid breakout through the triangle’s resistance and above the median line validates a larger growth and could be seen as a long opportunity.

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• Source: https://www.forexcrunch.com/blog/2024/01/24/gold-price-forms-triangle-eyes-on-us-pmi-data/