Gold Price Analysis: XAU/USD to escape from a range after US Retail Sales
Gold posts small gains, bouncing back towards $1750 despite the US dollar’s corrective pullback from multi-week troughs. XAU/USD lacks directional bias, awaiting US Retail Sales for a range breakout, FXStreet’s Dhwani Mehta reports.
See – Gold Price Analysis: XAU/USD to race higher towards $2000 by year-end – DBS Bank
Geopolitical risks lurk, with eyes on critical US Retail Sales for fresh direction
“The risk-off mood could offer some support to the traditional safe-haven gold. Investors remain nervous amid growing China worries and concerns over potential US sanctions on the Russian sovereign debt. Also, covid vaccine developments continue to have a bearing on the risk tone.”
“All eyes remain on the US Retail Sales data for March, which is expected to show a sharp rebound in consumer spending. Stronger data could point to strengthening domestic consumption, in turn, suggesting a potential rise in prices. In the meantime, gold will likely remain at the mercy of the dynamics in the yields and the dollar.”
“Gold needs a daily closing above the bearish 50-DMA at $1752 to unleash additional gains. The April 8 high at $1759 could then challenge the bulls’ commitments, as the $1800 mark beckons.”
“If the sellers find a strong foothold below the horizontal 21-DMA at $1734, a drop towards the April 13 low could be in the offing. Further south, the bears could then target the April 1 low of $1706.”
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
