As gold price stalls its rebound from multi-month lows just below the $1800 mark, analysts warn of an impending sell-off, with the focus now shifting to Tuesday’s US Retail Sales data, per Kitco News.
Key quotes
"Our model sees a fair value range for gold from $1,735 to $1,845, so at the current level, gold is somewhere near the middle of this range. The FOMC minutes are likely to determine gold's next near-term direction, where a hawkish report may send gold tumbling once more, “OCBC Bank’s strategists noted.
UBS said that gold could drop towards $1,600 an ounce and silver towards $22 an ounce.
"Good retail sales data say +0.2% or above, may arrest some fears of a fall out from the consumer numbers and see bond yields higher, and with it promote a turn higher in the USD, and a move lower in gold,” Pepperstone analyst noted.
"Unless this is the first in a series of shocking economic numbers for the US., I don't think its fortunes have drastically improved. It will struggle to break $1,800, and the fact that it marks the 50% retracement of the early June highs to August lows won't help matters," an analyst at OANDA said.
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