Gold Price soars above $1,685 critical support, US Retail Sales, Michigan CSI eyed

Gold Price struggles to prolong corrective retreat from annual low. Yields, Fedspeak probes XAUUSD sellers ahead of the major US consumer-centric data. Updates from China, recession worries drive pessimistic stance.

Gold Price (XAUUSD) fades corrective drop from YTD low as traders battle for obvious directions above the $1,700 mark, down 0.10 percent intraday around $1,710 heading into Friday’s European session. The precious metal lately fades recovery advances as traders grow cautious ahead of the important US Retail Sales for June and early readings of the Michigan Consumer Sentiment Index (CSI) for July.

The XAUUSD corrective rebound has its origins in the lowering of hawkish Fed bets and the narrowing of the inversion gap between the 2-year and 10-year US Treasury yield curves, which earlier supported a risk-averse sentiment. Also prodding the gold selling were the Fed policymakers’ attempts to talk down a 100 bps rate rise.

US Dollar Index (DXY) reverses the previous day’s drop from a two-decade top despite a lackluster Asian session, picking up bids to renew the intraday high around 108.68 by the press time. In doing so, the greenback indicator depicts an inverse connection with the Gold Price as it prepares for the third consecutive weekly decrease while driving the precious metal into the first straight negative week near the lowest levels in 11 months.

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