Rebound After Weaker Than Expected US Retail Sales

Gold is little changed in the Asia-Pac session, after closing 0.6% higher at $2004.40 on Thursday.

• After falling earlier in the week in the wake of Tuesday’s hotter-than-anticipated inflation reading, the yellow metal climbed back over the $2,000 threshold on softer-than-expected retail sales (-0.8% m/m vs. -0.2% est. and 0.6% prior). Overall, the contraction in retail sales pointed to the weakest report since March 2023.
• According to the MNI technicals team, technical conditions for spot gold may be limiting the advance, following the prior breach this week of $2001.9, the Jan 17 low and a key short-term support.
• That breach highlighted a resumption of the bear leg that started Dec 28. A continuation lower would open $1973.2, the Dec 13 low and the next key support. On the upside, the yellow metal would need to clear resistance at $2065.5, the Feb 1 high, to reinstate a bullish theme.