The yellow metal peaked during yesterday's session at $1300.70 per ounce but quickly reversed amid a recovery in equity prices in Wall Street and despite a decline of the US Dollar across the board. Data released yesterday showed retail sales in the US declined by 0.2% in April, against expectations of a modest gain while industrial production dropped by 0.5%, also worse than market consensus. The date had no lasting impact. Reports about trade and the probability of a delay in tariffs imposed on European cars from the US helped risk appetite, but not the precious metal.
Gold prices attempted again to surge past the $1300 level as expected but failed after printing a daily high of $1300.76 per ounce, but quickly reversed forming a consolidation zone just below the psychological level. The price is currently holding above the $1296 level with a still bullish momentum. The next level that we will be watching is the $1304.67 resistance level after the price breaks above the consolidation zone.
Support: 1295.36 / 1291.35
Resistance: 1298.49 / 1300.91