Gold: Flat lined in Asia after a strong bounce from key trendline support

Gold is rolling sideways around $1,210, having rallied off the key rising trendline support yesterday.
The metal could rise well above the immediate resistance of $1,212 if the US retail sales miss estimates by a big margin.

Omkar Godbole FXStreet Contributor

Gold's sharp recovery from the recent low of $1,196 has neutralized the immediate bearish outlook.

Notably, the strong rebound from the trendline connecting the Aug.16 and Oct. 8 lows is encouraging. The short-term bullish reversal, however, would be confirmed if prices convincingly cross the Oct. 31 low of $1,212.

That move will likely happen if the US October retail sales, due at 13:30 GMT, miss expectations, indicating the weakening domestic demand. Moreover, the international trade is likely to drag GDP lower in coming quarters, courtesy of trade war, hence domestic demand needs to hold strong to avoid a sharp slowdown in the economy.

The bullish reversal would remain elusive if the retail sales blow past expectations, reinforcing the ed's view that monetary policy needs to turn restrictive for some time.

Gold Technical Levels

XAU/USD

Overview:
    Last Price: 1209.5
    Daily change: -1.2e+2 pips
    Daily change: -0.0950%
    Daily Open: 1210.65
Trends:
    Daily SMA20: 1222.3
    Daily SMA50: 1213.65
    Daily SMA100: 1206.53
    Daily SMA200: 1240.63
Levels:
    Daily High: 1216.6
    Daily Low: 1197.4
    Weekly High: 1236.6
    Weekly Low: 1206.3
    Monthly High: 1243.43
    Monthly Low: 1182.54
    Daily Fibonacci 38.2%: 1209.27
    Daily Fibonacci 61.8%: 1204.73
    Daily Pivot Point S1: 1199.83
    Daily Pivot Point S2: 1189.02
    Daily Pivot Point S3: 1180.63
    Daily Pivot Point R1: 1219.03
    Daily Pivot Point R2: 1227.42
    Daily Pivot Point R3: 1238.23

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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