Article by: ETO Markets
US retail sales fell 0.8% MoM in January, which was substantially worse than the 0.1% decrease that was predicted. Additionally, the number of Initial Jobless Claims increased by 212K, which was higher than the predicted 220K but still indicative of a tight job market. The Philadelphia Fed Manufacturing Survey increased to 5.2 from -10.6 in January during the same time, while the NY Empire State Manufacturing Index improved to -2.4 in February from -43.7 in January.
The announcement continued the downward trend in government bond yields, which had been gradually declining throughout the morning. After rising from an intraday low of 4.187%, the 10-year Treasury notes are currently trading at 4.25%, down for the day. The US Dollar strengthens in tandem with rising interest rates, while it is still down against the majority of its main competitors.
Although gold is trading above the 200-DMA, the price of the yellow metal remains neutral to downwardly oriented. Regarding price activity, gold has experienced a string of lower highs and lows, paving the way for additional declines. Sellers must, however, recapture the 100-DMA at $…, which may allow us to test the low of $… on December 13 and then the 200-DMA at $…. On the other hand, gold can aim for the high of $… set on February 1 if buyers drive prices over the 50-DMA at $….
