Gold Price Prediction – Prices Rise Following Weak Retail Sales
Gold prices continued to rally as the dollar eased in the wake of the softer-than-expected retail sales report. Import prices along with export price rose more than expected. Yields declined on Friday for a third straight trading session which weighed on the greenback and buoyed the yellow metal.
Trade gold with FXTM
Gold prices rebounded and closed up on the session bouncing at support seen at the 10-day moving average at 1,816. Resistance is seen near the 200-day moving average at $1,849. Target resistance is seen near the Fibonacci retracement level of 50.0%, which is seen near 1,876. The 10-day moving average has crossed above the 50-day moving average, meaning that a short-term uptrend is now in place. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 79, just below the overbought trigger level of 80, foreshadowing a correction. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) histogram prints in the black with a flat trajectory which points to consolidation.
Retail Sales Stall
U.S. retail sales unexpectedly stalled in April. The Commerce Department reported that April retail sales were unchanged following a 10.7% surge in March, an upward revision from the previously reported 9.7% increase. Expectations were for retail sales to rise by 1% in April. Excluding automobiles, gasoline, building materials and food services, retail sales dropped 1.5% last month after an upwardly revised 7.6% increase in March. Core retail sales correspond most closely with the consumer spending component of gross domestic product.