Gold Price Prediction – Gold Slips on Solid US Retail Sales

Strong consumer spending weighs on the yellow metal
David Becker
Comex Gold

Gold prices moved lower on Monday as the dollar moved sideways gaining against the yen but losing ground again the euro. US yields moved higher in the wake of the stronger than expected US retail sales, which was delayed by a month due to the government shutdown. Gold failed to remain buoyed ahead of the Brexit vote which is scheduled for this week.

Technical Analysis

Gold prices moved lower on Monday after failing to take out resistance near the 10-day moving average at 1,299. Support is seen near the February lows at 1,276. The trend appears to be moving lower. The 10-day moving average crossed below the 50-day moving average which shows that a short-term downtrend is now in place. Positive momentum is accelerating. The fast stochastic generated a crossover buy signal in oversold territory. The fast stochastic is printing a reading of 17, below the oversold trigger level of 20 which could foreshadow a correction. Negative momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the red with a flattening trajectory which points to consolidation.

US Retail Sales Comes in Stronger Than Expected

US retail sales unexpectedly rose in January driving by increases in purchases of building materials and discretionary spending. The commerce department reported that US retail sales increased by 0.2% in January which was delayed because of the government shutdown. Data for December was revised lower shows that retail sales dropped 1.6% down from the 1.2% previously reported. The decline in December retail sales was the largest drop seen since September of 2009 during the great recession. Expectations were for January retails sales to be unchanged month over month. Sales in January increased 2.3% year over year. Excluding automobiles, gasoline, building materials and food services, retail sales rebounded 1.1%in January after a downwardly revised 2.3% plunge in December. The downward revision to December core retail sales could have an impact on the government’s fourth-quarter gross domestic product estimate.

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

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US