The gold market witnessed a fluctuating trend on Tuesday, as XAU/USD initially surged to an intraday high of $1,931.65, only to retreat back to near-term consolidation around $1,920. This development followed the release of US Retail Sales data, which exceeded market expectations, leading to a dip in the US Dollar’s value and a subsequent push for risk assets.
Despite the bullish sentiment in the gold market, concerns lingered among investors about the robust US economy potentially deterring the Federal Reserve from implementing anticipated rate cuts in 2024. However, the US Retail Sales figure alone may not be a reliable indicator of imminent inflation.
Analyzing the technical outlook, the near-term action revealed that spot Gold prices were struggling to surpass the 50-hour Simple Moving Average (SMA) around $1,920, with considerable resistance impeding any significant upward movement. Conversely, short-sellers faced substantial challenges as Gold prices maintained a bullish trajectory, trading well above the 200-hour SMA.
Daily candlesticks indicated a technical rejection for XAU/USD near the 200-hour SMA at approximately $1,930, following a notable 6.8% surge from the last swing low to $1,810. Notably, the near-term technical indicators signaled a likelihood of consolidation, with the 50-day SMA remaining flat, thus trapping prices within a mid-range.
With the gold market continuing to navigate various market dynamics, investors remain attentive to any further developments that may influence the trajectory of the precious metal in the coming sessions.