- Spot Gold prices are slipping back into the middle after Tuesday saw a push above $1,930.
- XAU/USD remains well-bid, sticking to the high end of last week’s rally.
- Inflation fears remain a key factor in Gold prices as investors keep one foot in safety.
XAU/USD kicked off Tuesday trading near $1,919 before seeing a steady rise into an intraday high of $1,931.65, but the day’s momentum is proving short-lived as Gold bids settle back into near-term consolidation $1,920.
US Retail Sales broadly beat market estimates, with the headline figure for September printing at 0.7% versus the forecast 0.3%, with the previous period also seeing an upwards revision from 0.6% to 0.8%.
US Retail Sales rose 0.7% in September vs. 0.3% anticipated
The Retail Sales beat sent the US Dollar (USD) broadly lower against the market, giving risk assets a solid push up the charts, and while spot Gold prices saw some bullish play as investors remain concerned about a bumper US economy threatening to push the Federal Reserve (Fed) further away from anticipated rate cuts in 2024, the US Retail Sales figure isn’t a solid indicator of possible inflation.
XAU/USD Technical Outlook
Near-term action sees spot Gold prices bidding into the 50-hour Simple Moving Average (SMA), with action hobbled near $1,920 and bidders struggling to take XAU/USD higher, while short-sellers are seeing significant headwinds with Gold prices firmly bullish and trading well above the 200-hour SMA.
Daily candlesticks see XAU/USD facing a technical rejection from the 200-hour SMA near $1,930 after a 6.8% climb from the last swing low into $1,810, and near-term technical indicators are warning of possible consolidation on the charts with a flat 50-day SMA trapping prices in the middle.
XAU/USD Daily Chart
XAU/USD Technical Levels