Gold still limited by $1300 but holds some strength above $1292
- 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.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
