As investors await the publication of US economic statistics, the gold market is demonstrating erratic behavior. Despite a climate of heightened hawkishness, the US GDP is anticipated to see positive growth. Increasing core CPI has not resulted in a decrease in demand for durable goods.
As the U.S. dollar continues to function like a wrecking ball that destroys practically everything, gold markets have declined significantly during the week.
After shattering a support line that had held for two months, the gold price has continued to decline and is now within striking distance of an annual low. The XAU/USD bears are optimistic due to firmer yields and worries about China. The US retail sales report is being anticipated with caution after lower than expected CPI and PPI failed to calm hawkish Fed predictions.
Tuesday’s trading session saw a slight decline in gold prices, as we continue to hover near the same support gap that we tested on Monday.
Gold markets fell initially during Monday’s trading session, but have since shown signs of life as they cling to the $1750 support level.