Gold headed back to $ 1215 amid softer US dollar, US retail sales in focus

  • US CPI miss-led USD weakness lifts gold back towards $ 1215.
  • Further upside likely on below estimates US retail sales data.

Gold prices on Comex are seen extending the Asian recovery in the European session, as the US dollar continues to lag against its major rivals following the unimpressive US inflation report and a recovery in the Emerging Markets (EM) currencies.

The bulls have regained control after the overnight drop to near $ 1205 levels, mainly driven by the renewed selling interest seen around the US dollar, as the European traders hit their desks and digest the downbeat US CPI figures.

However, it remains to be seen if the yellow metal can sustain the bounce amid a fresh bid tone caught by the Treasury yields across the curve, as easing US-Sino trade tensions lift the appetite for the higher-yielding assets.  

Also, markets may turn cautious heading towards the US retail sales, industrial production and prelim consumer sentiment data, dropping later in the NA session.

Gold Technical Levels

Resistances: $ 1218 (2-week tops), $ 1222.83 (daily R1/ Fib R2), $ 1230 (round figure).

Supports: $ 1203.68 (5-DMA), $ 1200 (psychological level), $ 1190.40 (Sept 11 low).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD consolidating gains ahead of all-important ECB decision

EUR/USD is trading above 1.12 but off the two-month high of 1.1257. Tension is mounting ahead of the ECB decision, where Lagarde is set to announce additional QE, potentially worth €500 billion. 


GBP/USD retreats from five-week top to sub-1.2600 area amid quiet session

GBP/USD snaps five-day winning streak to take U-turn from 100-day SMA, still above 1.2500. BOE’s Bailey tells banks to prepare for no-deal exit and downs the GBP. The US Dollar bounces off three-month low amid risk reset, pre-ECB moves.


Riots could assist US recovery by ending the economic paralysis

The US economy may be headed for a V-shaped recovery aided ironically enough by the demonstrations that have made nonsense of the continued social and business restrictions and the riots whose damage will require massive spending to repair.

Read more

Gold: Bounces back above $1,700 to keep buyers hopeful

Gold prices recover from immediate support line, 50-day SMA. The yellow metal’s failure to close below 50-day SMA, not to forget a six-week-old ascending support line keeps the buyers hopeful. Risk reset, cautious mood ahead of the ECB also favors the buyers.

Gold News

WTI retraces within an immediate triangle around $37.00

WTI seesaws near three-month high inside a two-day-old symmetrical triangle. The black gold rose to the highest since March 11 the previous day but MACD’s weakness dragged it back from $38.30.

Oil News