Gold: $ 1350 – a tough nut to crack, focus on US retail sales

  • Will it regain $ 1350 on weaker US retail sales?
  • Risk-off and weaker DXY will continue to offer support.

Gold futures on Comex are seen treading water below the midpoint of the 1300 levels, as the bulls remain on the back foot ahead of the US retail sales data release.

The yellow metals failed several attempts to regain the 1350 barrier, despite persisting risk off trades, as investors continue to assess the implications of the weekend’s US-led missile strikes on Syria on the broader markets.

However, the downside remains cushioned amid ongoing sell-off in the US dollar versus its main competitors, as worries over a potential US-Russia war over Syria continue to remain USD-negative.

More so, in an evidence of increased confidence in gold, speculators raised their net long positions in COMEX gold contracts by 363 contracts to 138,212 contracts in the week to April 10, the US CFTC) data showed last  Friday.

Attention now turns towards the US retail sales data and FOMC member Bostic’s speech for fresh incentives on the USD-sensitive gold. Also, in focus remains the Chinese Q1 GDP figures. Meanwhile, markets appear to have shrugged-off upbeat comments by the Minneapolis Federal Reserve President Neel Kashkari.

Gold Technicals

The Dukascopy Bank Team noted: “The nearest resistance is the monthly R1 and the senior channel at 1,354.00 and 1,360.00, respectively. In case the pair is driven by strong upside momentum, the yellow metal should not edge above the 2017/2018 high of 1,366.17. By and large, Gold has diminished its trading range in a seven-week ascending channel. This might be an early indication of a breakout south. This bearish movement also corresponds with the sensor channel. In terms of today, Gold should not fall below the 1,330.00 mark.”

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