Gold slid as healthy U.S. retail sales data prompted bullion investors to scale back their bets based on expectations of an imminent stimulus from the Federal Reserve. Bullion dropped after data showed U.S. retail sales rose in July for the first time in four months. However, ongoing expectations that policy makers around the world will announce fresh stimulus measures to help spur weak global growth continued to support the precious metal. Gold prices have been well-supported in recent sessions, amid ongoing expectations that central banks in the U.S., Europe and China will soon announce fresh stimulus measures to help spur growth in their respective economies. Investors were eyeing the release of euro zone growth data later in the day, after a report earlier showed that Germany’s economy slowed less-than-expected in the second quarter. Positive signals on the U.S. economy could cut the chances of another round of gold-friendly stimulus measures such as quantitative easing -- printing money to buy bonds. Expectations of such measures have supported prices in recent months. Investors now await U.S. regulatory filings by hedge funds and other big money managers which will show their gold investment holdings by the end of the second quarter. Now technically market is trading in the range as RSI for 18days is currently indicating 48.51, where as 50DMA is at 29976.3 and gold is trading above the same and getting support at 29920 and below could see a test of 29835 level, And resistance is now likely to be seen at 30120, a move above could see prices testing 30235.
Trading Ideas:
Gold trading range for the day is 29835-30235.
Gold slid after data showed U.S. retail sales rose in July for the first time in four months.
Ongoing expectations that policy makers will announce fresh stimulus measures to help spur weak global growth
Positive signals on U.S. economy could cut the chances of another round of gold-friendly stimulus measures
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