Gold prices (XAUUSD) spiked lower by near 3 dollars per ounce on the news that US Durable goods orders rose by more than projected and US GDP rising from 1.9% to 2.1%. Jobless claims were also lower than projected, showing that the US labor market is doing better than anticipated.
The batch of better than projected data sent gold prices down on lower demand for hedging against declines in stock markets and overall dollar strength.
Technically, the trend in gold prices (XAUUSD) was already lower, and a few weeks ago I said traders would probably short-sell near the 1473 level. Today, the trend in gold prices is downwards below the 1481 level, and if prices were to reach the 1469 -1481 I think traders will add to their bearish exposure. However, gold prices might not reach the before mentioned price interval given today’s better than expected data, instead, prices might decline below the November 11 low of 1447.90, and cause the price to reach the 1436.86 level, which is the price target of the ascending triangle pattern that developed in October.
The next key data to watch is the latest US PCE inflation figures at 15:00 London time.