Gold Price Consolidation Continues Looking for the Next Catalyst
Gold price started the trading session 0.20% higher at 1555 as the precious metal consolidation phase continues. Risky assets were under pressure after the positive economic data from the USA and the signing of phase one trade deal between China and the USA.
US retail sales increased at a month-over-month pace of 0.3% in December. Philadelphia Fed Manufacturing Survey came in at 17 well above the forecasts of 3.8 in January.
Meanwhile positive data out of China helped lift investors sentiment. China Retail Sales (YoY) registered at 8% above expectations (7.8%) in December.
Gold price after the recent spike to $1600 on tensions between Iran and U.S. retreated back to $1530 region. During the week the precious metal consolidates between $1540 and $1560 looking for direction. The technical outlook is bullish for gold as the price trades above all significant daily moving averages.
On the upside, initial resistance for gold price stands at $1557 the daily top. A break above would open the way for the next resistance at $1562 the high from January 13th. More offers might emerge at 1611 the high from January 8th.
On the flip side first support stands at $1549 the daily low. Next support for gold would be met at 1537 the low from January 14th. If gold price breaks below that level bears will target the low from January 3rd low at $1,528.