The yellow metal’s recent run-up likely takes clues from the risk-off mood and breached the key 200-DMA hurdle the previous day, opening the gate for the further upside to another important technical resistance.
That said, the DXY gained 0.21% on Thursday, after posting the heaviest losses in over a week the day before yesterday.
Also, mixed manufacturing figures from Philadelphia and New York, coupled with weaker-than-prior Jobless Claims, have an inflation component arguing the Fed policymakers’ rejection to act.
Also weighing on the sentiment could be the escalating coronavirus concerns in the West, as well as Asia–Pacific nations, which recently raised downside risk to the economic recovery from the pandemic.
As the subdued markets keep challenging the gold buyers, US US Retail Sales and the preliminary readings of the Michigan Consumer Sentiment Index, expected 0.4% for June and 86.5 for July respectively, will be crucial to follow.
Meanwhile, pullback moves need to close below the 200-DMA level of $1,826 to test the short-term rising trend line support of around $1,809.
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