top of page
Writer's pictureanalysiswatch

Title: Gold Price Forecast: XAU/USD consolidates in weekly highs near $1,830, US Retail Sales eyed



Jan 14, 2022 3:51AM ET


By: AnalysisWatch


The gold price eases from its weekly high of $1,829 as sellers continue to linger in the $1,830 area.


Gold's decline is mainly supported by a brief rally in the US dollar against its major rivals as the bears take a breather ahead of the release of US retail sales data. The US dollar index is currently trading at 94.70, slightly below the two-month low of 94.60.


The US currency's slide follows a 40-year high inflation rate that triggered a "sell the fact" reaction in the dollar. Investors also believed that real returns in emerging markets (EM) could be higher in the face of rising inflation in America, which reduced the dollar's appeal.


The sell-off in the technology sector on Wall Street also contributed to the greenback's woes, while the gold price maintained its upward momentum. However, despite continued weakness in Treasury yields and the dollar, the precious metal saw a sharp downward correction on Thursday as the US Federal Reserve's March rate hike seems to be all but a done deal.


All eyes are on US retail sales, Michigan consumer confidence, and Fed representative Williams' speech before the Fed enters a blackout period ahead of the FOMC decision on January 26.


US retail sales are expected to show no growth in December after rising 0.3% earlier. Meanwhile, the preliminary index of consumer sentiment is expected to fall to 70.0 in January from 70.6 the previous month.


Gold is consolidating in the week so far on Friday, picking up momentum to make a big break above the $1,831-32 supply zone. This level is where the previous week's high and the monthly high coincide.


The next stop for gold bulls is seen at the rising trend line (wedge), now at $1,838.



0 views0 comments

Commentaires


bottom of page