Gold Price Analysis: XAU/USD gains 0.18%, looks to re-enter rising channel
Gold is currently trading at $1,902, representing a 0.18% gain on the day. Having picked up a bid at $1,897 early today, the yellow metal is now looking to re-enter the bearish channel represented by trendlines connecting Sept. 28 and Oct. 7 lows and Oct.2 and Oct. 12 highs.
If followed by a move below the session low of $1,897, a failure to retake the bullish channel would confirm an end of bounce from the Sept. 28 low of $1,848 and open the doors for a fresh sell-off.
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Asia Market: With no stimulus backstop, traders have cause for caution
Gold was pushed down to USD1,900/oz in the US, primarily by good retail sales data, which showed sales rising 1.9% mom, above expectations of 0.8%, according to Reuters. That would seem to suggest gold could be sensitive to a degree regarding more or less monetary accommodation from the Fed, where more robust data will elicit a less dovish response from the Fed.
Near term, direction defaults back to the US dollar and US equity market movement, where gold has found a friend in the yuan, which is holding the US dollar “safe haven” ambitions in check.
Credit: FX Street