How to Trade GOLD on US Retail Sales Today?
On Friday, Gold soared to $1,348 despite better than expected US inflation figures. Most of the movement in Gold is coming from geopolitical tensions between the US and Syria. Today, the US Retail Sales report can help us determine further trends in Gold. Here’s what to expect next…
GOLD / XAU / USD -Fundamentals Overview
Recalling our April 16 – 20: Economic Events Outlook, the Census Bureau is due to release retail sales data at 12:30 (GMT). In February, retail sales fell by -0.1% vs. the forecasted figure of 0.3%.
Today, economists are expecting a 0.4% rise in retail sales and a 0.2% rise in core retail sales. The rise in sales indicates higher inflation and a growing economy. This positive data should help the US Dollar.
GOLD / XAU / USD – Technical View
As you can see in the 2-hour chart below, Gold is facing a solid resistance at $1,348 along with a support line at $1,342 and $1,337.
Positive Retail Sales – The trading range is very likely to be violated on the release of US Retail Sales data. In case of positive figures, Gold is likely to break down and can extend its bearish trend up to $1,333.
Negative Retail Sales – The negative Retail Sales figures can bring a bullish breakout and Gold can extend its bullish rally up to $1,352.
Gold / XAU / USD – Trading Plan
Today, $1,346 is a very crucial level. I will be looking to stay bearish below it to target $1,342 and $1,339.
Good luck!
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