Technical Bias: Bullish
The price of Gold extended upside movement on Wednesday, increasing the yellow metal’s per ounce value to more than $1192 ahead of some key economic releases which are due later in the New York session. The technical bias remains bullish due to a Higher Low in the recent downside move.
Technical Analysis
As of this writing, the metal is being traded near $1192. A support may be seen around $1181, the 23.6% fib level ahead of $1170, the low of the recent dip and then $1142, the low of the last major downside move as demonstrated in the following daily chart.
On the upside, the precious metal is likely to face a hurdle near $1205-$1200, the confluence of psychological number as well as 38.2% fib level ahead of $1224, the confluence of 50% fib level as well as high of the last major upside move. The technical bias will remain bullish as long as the $1142 support area is intact.
US Retail Sales
The US Bureau of Census is due to release the retail sales news today during the early New York session. According to the average forecast of different economists, the retail sales remained 0.2% in April as compared to 0.9% in the month before. Generally speaking, higher retail sales are considered positive for the economy thus a worse than expected actual outcome will be seen as bullish for the price of Gold and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, buying the precious metal around the current levels appears to be a good strategy in short to medium term if we get a worse than expected retail sales figure today.
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