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.