Gold Price Rebounds Ahead Of The CB Consumer Confidence
The gold price rallied in the short term, trading at $1,986 versus Friday’s low of $1,971. The precious metal turned to the upside as the USD depreciated versus its rivals, even though the US economic data came in better than expected in the last trading session.
The UK and Eurozone manufacturing and services data and the Canadian retail sales figures came in mixed. Gold registered an aggressive sell-off after the US Flash Manufacturing PMI and Flash Services PMI came in better than expected, confirming expansion in both sectors.
Today, the German Ifo Business Climate came in better than expected at 93.6 points versus 93.4 expected, compared to 93.3 in the previous reporting period.
Fundamentally, the US CB Consumer Confidence represents a high impact even tomorrow. The economic indicator could drop to 104.1 from 104.2 points. In addition, New Home Sales and Richmond Manufacturing Index data will be released as well.
On Wednesday, the Australian CPI is expected to report a 1.3% growth. Furthermore, the US Advance GDP and Unemployment Claims could shake Thursday’s markets. Only positive US data could send the XAU/USD down.
Gold price technical analysis: Sideways movement
(Click on image to enlarge)
Gold price chart
Technically, the gold price moves somehow sideways in the short term. After its massive drop, the XAU/USD is fighting hard to rebound.
Still, as long as it stays below the 23.6% (1,992) retracement level and under the upside 50% Fibonacci line, the yellow metal could resume its corrective phase.
The current rebound could represent a downside continuation pattern. False breakouts through the near-term resistance levels may announce a new sell-off. The meta is trapped between the 50% Fibonacci lines in the short term.
The 38.2% (1,957) is a potential downside target if the rate continues to drop. Dropping and stabilizing below the median line may announce a larger drop toward the lower median line (LML).
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