Gold Falls as Strong U.S. Retail Sales Lift Dollar Strength
Gold prices edged lower after U.S. Retail Sales data came in stronger than expected.
FUNDAMENTAL OVERVIEW:
Gold (XAU/USD) is retreated during Thursday’s European session as traders assess the latest U.S. Retail Sales figures and look ahead to comments from several Federal Reserve (Fed) officials. The precious metal is trading around $3,315, down nearly 1% on the day.
Uncertainty surrounding the Fed’s timeline for rate cuts persists, with key speeches expected from Governor Adriana Kugler, San Francisco Fed President Mary Daly, Governor Lisa Cook, and Governor Christopher Waller. Their remarks will be closely watched for policy clues.
Should investors come to believe that interest rates will stay elevated for an extended period, demand for U.S. Treasury yields may rise—potentially putting further pressure on non-yielding assets like gold.
Gold, often seen as a safe-haven asset during periods of economic uncertainty, is now influenced by recent U.S. economic data. Attention has shifted to the U.S. economic calendar, with June’s Retail Sales rising by 0.6%, surpassing the 0.1% forecast and reversing the 0.9% decline recorded in May—signaling a rebound in consumer spending. Additionally, better-than-expected Jobless Claims further strengthened the U.S. Dollar, adding downward pressure on gold prices.
GOLD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Gold is trading within a up channel.
Gold is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Neutral Zone, while the Stochastic oscillator suggests Negative trend.
Immediate Resistance level: 3327.00
Immediate support level: 3282.88
HOW TO TRADE GOLD
After a brief upward move, gold lost momentum and reversed to the downside. Since then, it has made several attempts to climb higher but faced repeated rejection at the same resistance level. Currently, gold has broken below both its previous day’s low and a key support level. If it continues to trade beneath this threshold, further downside could be expected.
