Gold keeps bearish structure amongst slow down in consumer spending
|Gold Analysis
Today we had retail sales and business inventories coming out of the US and the numbers were less than encouraging with both coming out very much lower than expectations.
This points out at a slow down in purchases which leads to think at the public spending less due to economic uncertainty and businesses stocking and producing less due to the lack of demand. Job numbers are next in line to suffer. In any case the $DXY (US Dollar Index broke today with the 98.20 level and bears keep pilling in in what seems to be a shift in overall market pressure.
We are keeping our short bias in Gold on a technical basis even though as we see it as a safe heaven from the USD and US equities until we see job numbers and avg. hourly earnings declining. Technically speaking we see 2 possible scenarios. A break above 1510.00 would mean short term bulls are in control and we could see the a test of the 1570.00 Our short position is still open and we see a retest of the 1460 in play for ultimate targets at the previous key level: 1430
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