Gold is trading under $1,800. As FXStreet’s haresh Menghani notes, XAU/USD remains confined in a range while the market focus now shifts to this week’s key US macro data – CPI report and Retail Sales data.
“The market focus now shifts to this week’s release of the latest US consumer inflation report, scheduled for release on Tuesday. Apart from this, the US monthly Retail Sales figures will also be looked upon for a fresh directional impetus.”
“Investors remain worried about the fast-spreading Delta variant and a global economic slowdown. This, along with reports that US Democrats were considering proposals to raise taxes on corporations and the wealthy, further contributed to the cautious mood.”
“The range-bound price action witnessed over the past four trading sessions constitutes the formation of a rectangle and points to indecision among traders. Moreover, neutral technical indicators haven’t been supportive of any firm near-term direction and further warrant some caution before placing aggressive bets.”
“The recent pullback from the $1,832-34 supply zone and repeated failures near the $1,800 mark favours bearish traders. Some follow-through selling below the $1,785-84 region will reaffirm the negative outlook and set the stage for a deeper retracement to the $1,750 level.”
“The $1,800 level now seems to have emerged as immediate strong resistance and is closely followed by the very important 200-day SMA, currently around the $1,810 region. A sustained move beyond might prompt some short-covering move and lift XAU/USD back towards the $1,832-34 strong barrier.”