Gold price (XAU/USD) increases to a record high before the start of June- After the release of US Retail Sales Data in American Session.
Gold (XAUUSD) Key Points
XAU/USD increased close to $1,980, which is the most since June 2.
US retail sales figures for June fell in lower than estimates.
The decrease in yields made metals more profitable.
Gold Soar Eyeing Slowing US Economy
The Gold (XAU/USD) climbed near $1,980 on Tuesday Late US Session. as it showed gains of in excess of 1 percent. In this respect, since the Retail Sales point to a slowing US economy, The US Treasury rates all decreased, supporting the value of the gold
According to the US Census Bureau, retail sales climbed by 0.2 percent during June. Which was less than the estimated 0.5 percent displayed plus the 0.5% growth seen the prior month. Sales outside the automotive industry increased as well, even less than anticipated (0.2% vs. 0.3% forecast. according to the Retail Sales Control Group) while still doing well (0.6% vs. 0.3% loss predicted).
US yields are declining as a result; the 2-year yield is currently at 4.72%. Whereas the five and 10 year rates dropped to 3.97 percent and 3.77%, each. Alongside the latter rate topping a dip that showed drops of over one percent. The XAU/USD is being supported by the decrease in US rates since they represent a chance cost of storing non-yielding assets.
The Next Focus on the US Fed
Now attention turns to the Fed‘s decisions from the following week. wherein investors have almost already factored in a 25 (bps) increase. Markets are no longer placing bets on an increase beyond July given low inflation and dull retail sales. Seeking hints about future direction, investors likely be watching the Fed’s declaration and Jerome Powell’s perspective.
Gold Technical Perspective
The XAU/USD prognosis is positive in the immediate future after restoring over the 100-day (SMA) of $1,956. Additionally, the (RSI) is elevated over its midpoint having a positive incline. The MA Convergence Divergence (MACD), which displays rising bars shows how the bullish have taken control.
Technical Levels
Levels of resistance: $1,985, $2,000, and $2,010.
Support levels: $1,940, $1,930, and $1,956 (100-day SMA).
