Gold Price Prediction – Prices Slip Following Solid US Retail Sales

 

Gold prices edged lower on Thursday, following an in-line Retail Sales report which showed a stronger than expected control group reading. US yields moved higher, which allowed the US dollar to rise, which paved the way for lower gold prices. Geopolitical risks continue to linger but are unable to stock the flow into riskier assets like stocks.

Technical Analysis

Gold prices edged lower on Thursday following a robust US retail sales report. Prices slipped back through support which is now resistance near the  10-day moving average which is now support near 1,556. Target resistance is now seen near the January highs at 1,611.  Additional support on gold prices is seen near the November highs at 1,517, and then the 50-day moving average at $1,491. This appears to be part of a bull flag continuation pattern.

While short term daily momentum mixed as the fast stochastic is also accelerating lower. The daily RSI is also experiencing negative momentum. The daily MACD is poised to generate a crossover sell signal, as the MACD line fast approaches the MACD signal line. The MACD histogram is poised to slice through zero index level which is also considered a crossover sell signal.

US Retail Sales Rise

The Commerce Department said on Thursday retail sales increased 0.3% last month. Data for November was revised up to show retail sales gaining 0.3% instead of rising 0.2% as previously reported. Expectations were for retail sales to gain 0.3% in December. Compared to December last year, retail sales accelerated by 5.8%. Excluding automobiles, gasoline, building materials and food services, retail sales jumped 0.5% last month after falling by a downwardly revised 0.1% in November.

 

 

 

The Commerce Department said on Thursday retail sales increased 0.3% last month. Data for November was revised up to show retail sales gaining 0.3% instead of rising 0.2% as previously reported. Expectations were for retail sales to gain 0.3% in December. Compared to December last year, retail sales accelerated 5.8%. Excluding automobiles, gasoline, building materials and food services, retail sales jumped 0.5% last month after falling by a downwardly revised 0.1% in November.