Article by: ETO Markets
In the absence of significant U.S. economic data releases, gold prices have been fluctuating between $2300 and $2345. The rise in U.S. Treasury yields and the moderate strengthening of the dollar have limited the upside potential for gold prices. The U.S. retail data scheduled for release on Wednesday evening could provide new trading directions for gold investors.
Additionally, weak Chinese economic data and the People's Bank of China halting its 18-month gold buying spree have put pressure on gold prices. On the other hand, geopolitical tensions in the Middle East and political uncertainty in Europe could attract more safe-haven investments into gold.
From a technical perspective, the lows of XAU/USD have been rising, gradually reversing the downtrend. The resistance at the 50-day simple moving average of $… appears fragile; once breached, gold prices are likely to quickly rise to around $… and then target the $… level, ultimately aiming to break the historical high of $... On the downside, gold sellers have consistently failed to break the $… barrier, thus lacking further bearish momentum. Only by breaking the May 3 low of $… can more gold sellers be attracted.
