FXStreet (Mumbai) – Gold prices recovered from the session lows, but the bears remain in control ahead of the household spending data in the US.
Eyes US retail sales figure
Investors wait to see if the sustained labor market strength in the US and wage growth is translating into higher spending by the households. The August advance retail sales growth is seen slowing to 0.3%. Meanwhile, the core retail sales figure could also attract market attention.
The metal might witness sharp moves if the retail sales figure significantly affects the fed rate hike expectations. At the moment, the fed fund futures point to about 30% probability of a rate hike on Thursday.
Gold Technical Levels
The metal recovered from the low of USD 1101.50/Oz to trade around USD 1105.50/Oz; down 0.20% on the day. The immediate resistance is located at 1113.50 (Sep 10 high), above which gains could be extended to 1123.50 (Sep 9 high). On the other side, support is located at 1102.10 (Sep 9 low) and 1098.20 (Sep 11 low).
(Market News Provided by FXstreet)