- Gold moves off $1300 as Wall Street turns higher and despite a weaker US dollar.
- US data mostly ignored by market participants, attention remains on trade issues.
The yellow metal peaked after the beginning of the American session at $1300.70/oz but it was again rejected and pulled back. The move lower took placed amid a recovery in equity prices in Wall Street and despite a decline of the US dollar across the board.
It dropped to $1294 and as of writing is trading at $1297, flat for the day. Price is consolidating at a higher level compared from two weeks ago when it traded at 2019 lows at $1266.
Data released today showed retail sales in the US declined by 0.2% in April, against expectations of a modest gain while industrial production dropped by 0.5%, also worse than market consensus. The date had no lasting impact. Reports about trade and the probability of a delay in tariffs imposed on European cars from the US helped risk appetite, but not gold.
XAU/USD Levels to watch
The rally from $1266 peaked on Monday at $1303 (1-month high). The area around $1300 has become a strong resistance level. A firm break on top is needed in order to clear the way to more gains. Above the next resistance might be seen at $1310.
On the flip side, $1292 is offering a strong support. Today during the European session the bearish tone eased after price bottomed at $1293. If gold slides below $1292/90, the short-term bullish bias would be invalidated.
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