Gold recovers to $ 1282 as USD demand wanes ahead of US retail sales

Fresh bids emerged just ahead of 10-DMA at $ 1277.81, allowing a tepid bounce in Comex Gold futures in the European session.

All eyes on US retail sales

The yellow metal remains heavily offered in Europe, extending its corrective slide from nine-week tops into a second day today, as markets resort to profit-taking on their long positions ahead of the key US retail sales, which is expected to throw fresh light on the future path of the Fed’s monetary policy. 

Additionally, easing geopolitical tensions around the Korean peninsula also dulled gold’s appeal as a safe-haven asset. However, over the last hours, the precious metal is seen making minor-recovery attempts, as the US dollar stalls its bullish momentum versus its major peers, following the retreat in the US yields.

Gold Technical Levels

Omkar Godbole, Analyst at FXStreet noted: “Prices could revisit $1284-1286 levels, given the prices are struggling to take out 1-hour 200-MA support and the RSI is oversold. The loss bearish momentum close to 23.6% Fib support on the daily chart also adds credence to bullish view.  On a larger scheme of things, only an end of the day close above $1300 would revive the bigger uptrend, while on the downside a daily close below $1272 would signal the metal has topped out at $1292.”