Gold, US 10-year return, US retail and industrial production call points
- XAU /USD was confirmed overnight as it continues to trade in the range
- Another record S&P 500 not enough to support US productivity
- Further data and Powell City Hall could provide the impetus for the next step
Gold prices continued to strengthen slightly overnight as US 10-year Treasury interest rates fell as the S&P 500 reached a record high. When the yield on US fixed income assets deteriorates, anti-fiat yellow metal can sometimes benefit. The bigger picture of gold shows that this move is consolidating over a wider range after last week’s third year this year was rejected a low of 1675.
For the remaining 24 hours, we have a wealth of potential market-moving data and Fedspeak. It starts with US retail and industrial production before Fed director Jerome Powell conducts a City Hall web chat with teachers and students across the country. It is not known whether Powell will make any comments to the Fed in these conversations. On Wednesday, the market will look closely at the language FOMC minute issue for instructions on Fed’s restrictive plans.
GOLD PRICE – Technical analysis
The daily gold table below illustrates that we have the settings for the current consolidation phase of the market, with a low return close to 1675. Despite this recovery, gold is still break significant resistance levels as it approaches several significant peaks, with 100 and 200 day simple moving averages in 1806 and 1812, respectively. In addition, the last highest price is in 1834, providing additional wood for chopping gold bulls.
XAU / USD – daily schedule
– Written by Daniel McCarthy, Strategist For DailyFX.com
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