Gold has started to breakout to the upside as inflation fears in the United States economy cause traders and investors to move back into the yellow-metal. A clear short-term bullish bias is in play while the price of gold trades above the $1,818 level this week. A bullish inverted head and shoulders pattern is suggesting gold could overshoot to the upside, with the $1,870 level a possible target.
XAUUSD is only bullish while trading above the $1,818 level, key resistance is found at the $1,850 and the $1,870 levels.
If XAUUSD trades below the $1,818 level, sellers may test the $1,810 and $1,795 support levels.
