GOLD PRICE VIEWS:
- Gold prices held a profit after a 2.9% increase over the last 3 trading sessions
- Disappointing indicators of Chinese retail and industrial production reduced awareness of risks
- Prices are looking for immediate resistance to $ 1,785, a breach of which could open the door to further benefits
Gold took place stably during Tuesday A.PAC session after an increase of 2.9% in the last three trading days. Risk sentiment became sour after China reported disappointment Retail and industrial production July figures highlighting downward pressure during viral recurrence and severe weather conditions.
Growth rate industrial production measured to 6.4% in July, which is 4th consecutive monthly declines (graph below). This lost market expectations for 7.8% growth. Retail economic growth slowed to 8.5%, from 12.1% a month ago, well below the 11.5% forecast. This suggests that the Delta option and the flood control measures in Henan Province have had a greater than expected impact on consumer spending and production. As a result, APAC shares fell sharply and asylum-related assets rose. Precious metals benefited from Friday against this background.
Chinese industrial production and retail – The past 12 months
Source: Bloomberg, DailyFX
Looking to the future, traders are looking at Wednesday FOMC meeting minutes Details of the Fed’s political outlook. In addition, US retail figures and RBNZ interest rate the decision is also in focus.
Technically, gold prices rose from a four-month low DXY US dollar index back. Prices are challenging iintermediate resistance level at 1785 – 61.8% fibonacci retracement. Failed to infringe 1,785 can provide immediate support for retreat to 1750. MACD indicator is beginning to take shape bullish crossover, suggesting that the uptrend may be building.
Gold – daily schedule
– Wrote DailyFX.com strategist Margaret Yang
Use the Comments or section below to contact Margaret @margaretyjy Twitter