Gold Price Prediction – Prices Whipsaw Following Stronger US Retail Sales

Retail sales came in stronger than expected
David Becker
Gold Bars Close-up
Gold Bars Close-up

Gold prices whipsawed for a second consecutive trading session as indecision became the theme of the day. US yields surged higher, but the greenback was unable to gain traction as yields in Europe surged even more. Stronger than expected US retail sales, in conjunction with sold US sentiment was the catalyst that weighed on gold prices.

Trade gold with FXTM

 

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

Visit Broker

90% of retail CFD accounts lose money

90% of retail CFD accounts lose money

 

Technical Analysis

Gold prices whipsawed attempting to rally but failing after testing  10-day moving average at 1,512 and then moving lower. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal in oversold territory. Currently the fast stochastic is printing a reading of 16, which is well below the oversold trigger level of 20 which could foreshadow a correction. Medium-term momentum is negative as the MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices. Prices are forming a topping pattern, and have been unable to gain traction. The weight of the ECB rate cut and stronger than expected US data will keep the dollar buoyed which should weigh on gold prices.

US Retail Sales Rise

The Commerce Department reported on Friday that US retail sales rose moderately in August, driven higher by a jump in auto buying and healthy online sales. The Commerce Department says retail sales increased 0.4% last month, down from 0.8% in July. Excluding autos, sales were unchanged for the first time since February. Online sales continued to soar, rising 1.6%, roughly the same amount as in July, when Amazon held its Prime Day.  US Sentiment more than expected this month as consumers felt more confident about current and future economic conditions, according to preliminary data released Friday by the University of Michigan.

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
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