Gold Price Prediction – Prices Consolidate Despite Robust Retail Sales
Gold consolidates and continues to trade sideways
Gold prices barely moved on Friday inching lower and trading in a very tight range. The dollar declined slightly after rallying on Thursday as US yields consolidated. The movement in the dollar and yield came despite a stronger than expected US retail sales report, that seemed to be countered by a slight dip in US consumer confidence.
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Technical analysis
Gold prices edged lower trading sideways and barely moving on Friday. Prices remain above short term support is seen near the 10-day moving average at 1,902. Resistance is seen near the 50-day moving average at 1,927. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal on the upper end of the neutral range. Medium-term momentum remains neutral as the MACD histogram prints in the black with an upward sloping trajectory that points to a slow trend higher.
Retail Sales Comes in Strong than Expected
US retail sales came in strong than expected as consumers accelerated their buying habits. US retail sales increased by 1.9% month over month. Expectations had been for retail sales to increase 0.7%, up from a 0.6% rise in August. Excluding autos, the gain amounted to 1.5%, which also was better than the 0.4% estimate.
