Piece written by Alexa Smith, Trive Financial Market Analyst 

The gold spot price (XAUUSD) has bounced due to a weaker USD. Cooling inflation in the US has prompted the likelihood of the Federal Reserve skipping an interest rate hike in July which has stomped on the Greenback’s gains as a result. However, US Retail Sales are expected today, which could apply downside pressure if the release aligns with forecasts. 

US Retail Sales are expected to expand slightly from 0.3% to 0.5%, which could prompt a comeback by the US Dollar. However, China’s GDP grew despite falling below forecasts which could boost demand for the commodity. Is China showing signs of economic recovery, or will commodities continue to succumb to heat from dwindling demand and rising interest rates? 

Technische Analyse 

The gold spot price saw its downward trend come to an end on the 4H Chart due to a weaker US Dollar, establishing major support at $1893.76 per ounce. As the spot price edges further away from the 50-day moving average, the $1980.67 per ounce major resistance may act as a pivot point for the sustenance of the upward trend if a breakdown of the $1964.56 per ounce resistance occurs. 

However, if the current $1964.56 per ounce resistance level holds, the $1947.87 per ounce support at the 23.60% Fibonacci Retracement may pose a barrier to further downside possibilities. 

Zusammenfassung 

The gold spot price is gaining upward momentum, with the $1964.56 per ounce resistance posing a barrier towards the $1980.67 per ounce major resistance. However, the $1964.56 per ounce resistance could hold, which may encourage a pullback towards the $1947.87 per ounce support at the 23.60% Fibonacci Retracement. 

Sources: TradingView, Reuters