Data this Friday focuses on foreign long-term securities purchased by US citizens against US long-term securities purchased by foreigners during the past month compares how the USD is valued in the market.
Markets are still phasing in the fact that gold remains attractive despite USD strength, and remained bullish for the short term as price of gold traded not below the uncharted territory of 2013 lows. A higher rate of inflation correlates to more demand for Gold, yet the indecisive nature of the Fed towards the timeline and necessary economic indicators to trigger a rate increase still creates uncertainty in the market. Earlier in the week we will see how one of the biggest buyers of Gold, China, performs with its Trade Balance and CPI figures, which may impact their demand for gold among the currencies of trading partners.
Support at 1208 will see Gold rise against the USD as the moving averages proved indecisive, as sellers may pay caution to the wind as USD strength indicators this week may come in the form of retail sales figures and the weekly unemployment claims data. Failure to clear the resistance of 1226 we can expect the 5 weeks of bearish gold movement to resume.