Gold Prices May Fall Further on US Retail Sales Report

Talking Points:

  • Gold prices dump as US officials rush to de-escalate North Korea tensions
  • Upbeat US sell sales information might supplement to waste on firming Fed rate travel bets
  • Crude oil cost tumble on signs Chinese direct slowing, US outlay flourishing

Gold prices incited reduce amid a liberation in risk appetite. Investors’ chipper mood reflected easing geopolitical concerns after comparison US officials – including a heads of State and Defense departments as good as a inhabitant confidence confidant and a Director of a CIA – sought to de-escalate tensions between a US and North Korea following last week’s burning rhetoric.

Treasury bond yields rose alongside batch prices, sapping direct for non-interest-bearing resources including a yellow metal. Easing fears about politically-inspired instability were also review as augmenting a luck of serve Fed tightening. The pragmatic 2017 rate travel trail steepened and a US Dollar duly rose, undermining a relations interest of anti-fiat alternatives.

Crude oil prices forsaken after China pronounced oil enlightening forsaken 4.4 percent in July, imprinting a largest tumble given 2014, while EIA projected that US shale outlay will strike an all-time high of 6.15 million barrels per day in September. Signs of fading direct from a world’s largest wanton consumer and flourishing outlay from a many poignant pitch retailer clearly dented prospects for shortening a tellurian supply glut.

Looking ahead, US sell sales information might devalue bullion offered vigour if a numbers relate a extended alleviation in mercantile information outcomes given mid-June, boosting Fed impulse withdrawal bets. Meanwhile, wanton oil will demeanour to a weekly set of API inventory upsurge figures for direction. By approach of context, central EIA statistics due Wednesday are seen display a 3.5 million tub drawdown

Have a doubt about a trade commodities? Sign adult for a trading QA webinar and ask it live!

GOLD TECHNICAL ANALYSISGold prices put in a bearish Evening Star candlestick settlement next double tip insurgency in a 1293.90-95.46 area (61.8% Fibonacci expansion, double top), hinting a spin reduce might be ahead. A daily tighten next a 14.6% Fib retracement during 1279.36 exposes a 23.6% turn during 1271.53. Alternatively, a pull above 1295.46 targets a 76.4% enlargement during 1303.98.

Gold Prices May Fall Further on US Retail Sales Report

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices seem to have damaged rising trend line support set from a Jun pitch low, hinting a two-month uptrend has been overturned. From here, a daily tighten next a 23.6% Fibonacci enlargement during 47.30 targets a 38.2% turn during 45.38. Alternatively, a pierce behind above a 14.6% Fib during 48.48 opens a doorway for a retest of a Aug 1 high during 50.40.

Gold Prices May Fall Further on US Retail Sales Report

Chart combined regulating TradingView

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

To accept Ilya’s research directly around email, greatfully SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

About author