Gold Price Prediction – Gold Slides on Stronger Greenback

Strong retail sales revisions weigh on gold prices
David Becker
Gold daily chart, June 14, 2019

Gold prices failed to break out and moved lower through out the trading session as the dollar gained traction against most of the major currencies. Since gold is priced in US dollars, the stronger greenback generated headwinds for gold prices. Retail sales came in positive, but softer than expected, but the revisions to prior months helped lift short term yield helping to buoy the US dollar.

Technical Analysis

Gold prices attempted to break out on Friday but was unable to push above trend line resistance near 1,388. Prices slipped through out the trading session settling lower on the day. For the week gold prices are nearly unchanged as it formed a weekly doji week, which is a since of indecision. Short term, momentum remains positive as the fast stochastic recently generated a crossover buy signal. The current reading of 82, is above the overbought trigger level of 80 and could foreshadow a correction. Medium term positive momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the black with a declining trajectory which points to consolidation. The relative strength index (RSI) moved lower out of overbough territory which reflects accelerating negative momentum.

Retail Sales Grow Slower than Expected

US retail sales rose 0.5% in May, according to the Commerce Department, as households bought more cars. Expectations were for retail sales to rise by 0.6%. Data for April was revised up to show retail sales gaining 0.3%, instead of dropping 0.2% as previously reported. Excluding automobiles, gasoline, building materials and food services, retail sales advanced 0.5% last month after an upwardly revised 0.4% rise in April. Core retail sales correspond most closely with the consumer spending component of gross domestic product. The solid gains in core retail sales in April and May suggested consumer spending was gaining speed in the Q2 after braking sharply in the Q1.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.