The precious metal gold continues to trade steady on Tuesday as investors awaited the U.S. retail sales data. As you know, Gold shares a direct positive correlation with the U.S. dollar. Therefore any movement in the dollar can also result in massive fluctuations in the yellow metal gold.
Recalling our Daily FX Brief, July 16, the movement in USD is all about retail sales figures. The US consumer has been active in May as sales rose by 0.5% and core sales by an identical scale. May’s report was followed by an upward revision for May. This time, more modest increases of 0.2% on the headline and 0.1% in core sales are projected.
The economic data could help as a sign of the strength of the world’s biggest economy amid lingering concerns over a global economic slowdown.
On Tuesday, the precious metal gold prices trade slightly bullish despite the highly positive Empire State manufacturing numbers and other positive retail sales and industrial production data out of China the increase came at gold prices.
XAU/USD – Technical Outlook
On the technical front, gold hasn’t changed much as it continues to trade in the symmetric triangle pattern. The pattern is supporting gold around 1,410 along with resistance at 1,414. For the moment, gold prices are trading neutral over 1,410 support along with 20 and 50 periods EMA supports.
Key Trading Level: 1,414.23
Let’s keep an eye on an intraday crucial trading level 1,414. Gold is very likely to stay bearish below this and bullish above this level. On the upper side, a bullish breakout can lead gold prices towards 1,419 and even 1425. Alternatively, the bearish breakout of 1,414 can trigger selling until 1,410. All the best!