The price of Gold retreated after reaching 1,662 yesterday. After its strong rally, a temporary drop is natural. The yellow metal could test and retest the near-term downside obstacles before trying to resume its leg higher.
Fundamentally, the Canadian GDP stands as a high-impact event today. The economic indicator is expected to report a 0.1% drop versus the 0.1% growth in the previous reporting period. In addition, the US Final GDP could register a 0.6% drop, while Unemployment Claims could come in at 215K in the last week. The fundamentals could move the markets later, so you should be careful.
From the technical point of view, XAU/USD rallied after escaping from the minor down channel. Now, it has jumped above the major down channel's resistance. Validating its breakout may announce an upside continuation.
The 1,654 - 1,659 area represented a resistance zone, so a minor retreat is natural. An upside continuation could be invalidated only if the rate fails to stay above the downtrend line and above 1,654.
Staying above the broken downtrend line and making a new higher high, breaking above 1,662 validates an upside continuation and brings long opportunities.
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