#GoldTechnical analysis.#24K99 News On Tuesday (December 17), during the European market's early session, spot Gold maintained a mild downward trend, with the current price around $2647 per ounce. FXStreet Senior Analyst Dhwani Mehta wrote on Tuesday, analyzing the technical trends of Gold prices.
Mehta stated that before the Federal Reserve's decision, Gold traders are looking forward to the USA's November retail sales data for some new trading incentives. However, the Consumer expenditure data is not likely to change the market's expectations for the Federal Reserve's actions this week.
The CME's 'Federal Reserve Watch' tool shows that the market continues to fully digest the possibility of a 25 basis point rate cut by the Federal Reserve on Wednesday.
On Tuesday at 21:30 Peking time, the USA Census Bureau will release the retail sales data for November. Authoritative media surveys show that the USA's November retail sales month-on-month growth is expected to be 0.5%, following an increase of 0.4% in October.
US retail sales data are commonly known as "Terrible Data" because they usually have a significant impact on financial markets, which may affect the trends of assets such as the US dollar and gold.
Analysts pointed out that if the USA's retail sales data is stronger than expected, the dollar may strengthen, which would further drive Gold prices down; on the other hand, a disappointing retail sales report would stimulate a rebound in Gold prices.
How to trade gold?
Mehta pointed out that from the daily chart, on the 14th.Relative Strength Index(RSIIt is flat around 50, indicating that Gold prices lack a clear directional tendency.
Mehta stated that Gold buyers must break through the 50-day moving average of $2671 per ounce to provide additional support for the recent rebound. The next upward target for Gold prices is $2700 per ounce.
If Gold rises further, prices may reapproach the several weeks high of $2726 per ounce.
(Spot gold daily chart source: FXStreet)
On the other hand, Mehta added that if the daily closing price of Gold falls below the 21-day moving average of $2655 per ounce, this could initiate a new downward trend and drop towards the December 6 low of $2613 per ounce.
The bottom line for Gold buyers is in the $2600 per ounce area, where the 100-day moving average coincides with the low from November 26.
At 16:31 Beijing time, spot Gold reported at $2646.94 per ounce.
