Gold Intraday: Drifting Sideways within Broadening Pattern

On Wednesday, spot gold continued to consolidate within a narrow range and ended up 0.1%, while spot silver surged 1.0% to its highest level since September last year.

Gold 5

On Wednesday, spot gold continued to consolidate within a narrow range and ended up 0.1%, while spot silver surged 1.0% to its highest level since September last year.

Earlier today, official data showed that China's 2Q GDP grew 3.2% on year, above consensus forecast of +2.4%. However, industrial production rose 4.8% on year in June as expected, while retail sales declined 1.8%, compared with +0.5% estimated, possibly suggesting that the recovery in the recent month is somewhat lagging behind expectations

Later today, U.S. retail sales data for June will be released (+5.0% on month expected). It remains to be seen if investors' optimism, regarding economic recovery, eases further. 

From a technical point of view, spot gold remains trading within a bullish channel drawn from June as shown on the 1-hour chart, but has yet broken above a broadening pattern in the shorter term, suggesting that it is consolidating after the recent rally. The level at $1,800 may be considered as the nearest intraday support, while a break above the nearest resistance at $1,818 would open a path to the next resistance at $1,825. Alternatively, losing $1,800 might suggest that the next support at $1,792 is exposed.

Source: TradingView, Gain Capital

More from Gold

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account