While Gold in the midst of a 3 day downtrend, Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. Currently trading at $1,790.5 per ounce, CME Gold remains range-bound between $1,784 and $1,794.5.
Gold upside coincides with further encouraging market factors as United States Core Retail Sales published yesterday at 13:30 UTC came out at -0.2%, falling short of the 0.2% projections and continuing its decline from the previous 1.2% figure. Following a previous reading of 1.3%, Retail Sales in United States released yesterday at 13:30 UTC fell short of the -0.1% figure expected by analysts with an actual reading of -0.6%.
Meanwhile, United States Philadelphia Fed Manufacturing Index (Dec) came out at -13.8, while a consensus of analysts was expecting -10.
Gold made an initial breakout above its 10 day Simple Moving Average at $1,791.42, a potential indicator of a newly emerging bullish phase. In contrast, Gold price action is currently oscillating around the $1,794 resistance level with prices moving above and below several times during the session.
Following today's unexpected gains, extensive multifactorial technical analysis forecasts CME Gold to buck against its prevailing downtrend and begin to turn higher in the short term. With all probabilities considered, the CME Gold is expected to pick up significant bullish sentiment in the coming days.
Though Gold is going up, other Metals are underperforming — Silver is down 38 cents from the beginning of the session and now trades around $22.93. Platinum closed at $1,000.5 (down 1.25%).
Having set a significant high of $2,058.3 2 months ago, Gold is trading 10.13% lower.