Gold prices are a bit lower today, Tuesday, after yesterday’s gains. A slightly stronger USD and a technical pullback are behind these slightly lower prices.
Comex gold futures for August delivery lost $14.30 of its value to reach $1,397.60 while gold price in the spot market was down by $13.30 to be traded at $1,398.50.
The Asian market showed stronger signs today. The Japanese market started to recover from yesterday’s bear attack. While the Chinese stock market remained relatively weak after the release of confusing manufacturing data.
The Organization of Economic Cooperation and Development (OCED) reported that consumer price index rose to by 1.3% in April versus 1.6% in March.
The producer prices in the Euro zone fell by 0.6% in April. These combined numbers imply the struggle against the recession is still in place.
The USD gained some strength today, though this strength might not continue for long.
Investors now look forward for the release of more US economic data, such as: Goldman Sachs and Johnson Redbook retail sales, US trade deficit report, ISM New York report and IDB/TIPP index.
London AM gold price fix was at $1,405.25 this morning while yesterday’s PM gold price fix was at $1,402.50.
Technically speaking, gold futures bears are still in control. But, the recent gains suggest a new bullish trend. Gold bulls need to close above the technical resistance at $1,421.60 while the gold bears needs to take the prices below $1,372.80.
Gold current resistance is at $1,400 then $1,414.80 while gold technical support is at $1,388.30 then $1,380.