- Gold is on bids near $1295 at the initial trading hours on Monday.
- Recent risk off refrained from validating previous Doji and rather portrayed inverted hammer.
- 50-day SMA level around $1303 can act as immediate resistance with $1290 likely being nearby support.
Gold prices took a U-turn from $1295 during early Monday. The yellow metal couldn’t respect previous Doji formations portrayed during late last-week as risk-off moves ruled trade sentiments since morning and formed inverted hammer on 4-Hour chart. Today’s US retail sales may offer near-term direction to the quote.
In spite of taking a big leap on Friday, mainly due to weak US NFP print, the Gold prices softened a bit by the day-end as investors focused on the welcome unemployment rate, average earnings and revised prior of the nonfarm payrolls for the previous month. With this, there prevailed two Doji formation, indicating pullbacks, on H4.
During the weekend, China flashed weak inflation numbers and Brexit favored risk-off as EU-UK continued jostling for a trade-deal before a day of voting on the deal at the UK parliament. As a result, there prevails an inverted hammer on H4 during initial Monday trading, which in turn favor short-term buying.
At the Brexit front, EU signals higher divorce payment on delayed Brexit while the UK seems in no mood to respect the deals from Brussels. Hence, the cacophony surrounding British departure from the EU region could continue supporting safe-havens.
Traders may now concentrate on monthly US retail sales figures and Brexit developments for fresh direction on the fundamental front. The headline retail sales control group is likely to have increased by 0.6% in January from -1.7% earlier contraction.
Gold: Technical Analysis
With the inverted hammer favoring the Gold’s uptick, 50-day simple moving average (SMA) at $1303 can act immediate resistance, a break of which can further push buyers toward $1312/13 resistance-area comprising late-February lows.
In a case prices slid beneath $1290, $1286 and $1283 could offer intermediate halts before dragging them to $1280 and $1278 rest-points.
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