Gold has found its feet around $1,820 after falling to fresh weekly lows of $1809 in the first half of Thursday’s trading. XAU/USD’s fate hinges on US consumer data while technicals favor bulls, FXStreet’s Dhwani Mehta reports.
US Retail Sales and Michigan Consumer Sentiment hold the key
“The US Retail Sales are likely to rise by 1% MoM in April when compared to a massive 9.7% increase reported in March. If the data bets estimates, the US dollar is likely to see a fresh leg higher amid the ongoing influence of inflation dynamics on the markets. Gold could bear the brunt of fresh dollar’s advance. Meanwhile, disappointing US data could temper the Fed’s tightening calls, boding well for the gold optimists.”
“The price of gold could advance towards the 200-DMA at $1847 if the buying interest picks up pace. Ahead of that the $1840 level needs to be scaled on a sustained basis.”
“The confluence of the 21 and 100-DMAs at $1795 could emerge as a strong support if Thursday’s low caves into any downside pressure.”
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