Gold prices asserted their upside move late in the New York session, as Reuters quoted new York Federal Reserve President John Williams as saying that the present conditions and data are not enough to cause the Fed to change its monetary stance.
However, he reiterated that the US economy would experience its fastest growth in 40 years, with a projected GDP of 7%. Market participants preferred to focus on his monetary policy pronouncement, which is a USD-negative stance. As such, gold prices gained 1.35% on the day.
Technical Outlook for Gold Prices
The XAU/USD pair has violated the bullish flag on the daily chart but has met resistance at the 1789.49 price level. Price needs to clear this area with a 3% closing penetration to the upside, targeting a projected measured move termination point at 1815.20. Further ascent depends on price taking out the supply zone between 1828.54 and 1840.55.
On the other hand, a forceful rejection from 1789.49 pushes prices back towards the 1763.30 support. A breakdown of this level opens the door towards 1741.01; this move invalidates the bullish flag.