Gold Daily Analysis – November 16, 2017

Gold prices dipped lower on Wednesday and continue to trade lower on Thursday morning after the dollar strengthened due to better than expected economic data. Gold is trading at $1277, -0.05%, as of 9:00 GMT.

A duo of reports on retail sales and inflation lifted the dollar, pressuring gold prices to retreat from highs as the precious metal remained on track to post a loss for the first time this week.

According to the Labor Department on Wednesday – its Consumer Price Index rose 0.1% last month after jumping 0.5% in September.

The Commerce Department reported on Wednesday that the Retail sales increased 0.2% last month beating expectations of a 0.1% increase.

Technical View

Gold four-hour chart has formed a “Megaphone chart pattern”.  The previous session ended up bearish. In the upcoming sessions, the correction is expected to decline further on a bearish momentum to extend all the way to $1276-1272 levels.

The gold market still trades in the range which shows traders indecision. Support holds near $1272 and Resistance holds near $1280.