The yellow metal continued to move higher after last week's breakout of a 7-week range as the positive tone remains intact. The US retail sales report printed lower than expected as the core retail sales printing at -0.1% versus an estimated 0.4% and the retail sales printing 0.1% versus an estimated 0.7%. Prices pulled back during the NA session most probably due to profit taking and they may extend the pullback but again the tone is still positive especially with the consolidating US yields to the downside and the rising geopolitical tensions.
Gold prices peaked yesterday at $1233, the highest level since July 26 but pulled back under $1230 finding support around the $1225 zone as it was heading for the highest close in two months, with a gain of almost $10. The price is currently hovering above the $1226 level but there is a divergence with the momentum which could extend the pullback. The next level we will be watching is the $1220.10 support level.
Support: 1180.6 1177.69
Resistance: 1184.86 1188.8