- Gold price consolidates gains below $3,000 as the Fed week kicks in.
- US Dollar and Treasury yields stay defensive on trade war-led economic woes.
- Gold price eyes more upside as the daily technical setup stays bullish.
Gold price is trading better bid below the historic high of $3,005 reached last Friday. The upside potential in Gold price remains intact amid favorable fundamental and technical factors.
Gold price looks to US Retail Sales data ahead of Fed
On the fundamental front, US President Donald Trump sparked global trade war and its impact on the US economic prospects, latest geopolitical tensions and the increased odds that the US Federal Reserve (Fed) will stick to its easing cycle continue to underpin the safe-haven appeal of the Gold price while remaining a drag on the US Dollar (USD).
Over the weekend, geopolitical tensions escalated between the US and Yemen after the US launched airstrikes on large-scale strikes on Yemen, targeting the Iran-backed militant group – Houthis. In response, Houthis attacked US vessels in the Red Sea, which Trump vowed to stop, warning that "hell will rain down" on the Houthis if they continue.
Meanwhile, Israeli military strikes killed at least 15 Palestinians in the Gaza Strip over the past 24 hours. Additionally, Trump’s envoy Steve Witkoff said on Sunday that he expected the US President to speak with Russian President Vladimir Putin this week after the Kremlin supported the 30-day cease-fire with Ukraine.
Gold price also find support from the latest measures launched by China on Sunday to boost consumption and raise incomes. China is the world’s top Gold consumer. Further, mostly upbeat Chinese activity data for the January and February period also helps keep Gold price afloat.
However, it remains to be seen if Gold price sees a fresh leg higher as the US Retail Sales data will likely provide fresh hints on the state of the US economy, driving the next direction in the USD.
That said, Gold traders will refrain from placing fresh bets on the bright metal ahead of Wednesday’s Fed policy announcements and the updated economic projections.
Gold price technical analysis: Daily chart
Gold price remains exposed to upside risks following the upside break of an ascending triangle formation last Thursday.
Gold buyers need acceptance above the $3,000 psychological barrier to extend the record rally toward the $3,050 mark.
The 14-day Relative Strength Index (RSI) sits just beneath the overbought region, which is currently near 67, keeping buyers hopeful.
Therefore, any retracement in Gold price will likely be considered a good dip buying opportunity.
On a corrective downside, Gold price could challenge the previous triangle resistance-turned-support at $2,956, below which the 21-day Simple Moving Average (SMA) at $2,923 will be tested.
The last line of defense for buyers is at the triangle support line, pegged at $2,906.
Economic Indicator
Retail Sales (YoY)
The Retail Sales data, released by the US Census Bureau on a monthly basis, measures the value in total receipts of retail and food stores in the United States. Retail Sales measure the change in the total value of goods sold at the retail level during a year. Retail Sales data is widely followed as an indicator of consumer spending, which is a major driver of the US economy. A result higher than expected is typically viewed as positive or bullish for the USD, whereas a lower than expected result is considered negative or bearish for the USD.
Read more.Next release: Mon Mar 17, 2025 12:30
Frequency: Monthly
Consensus: -
Previous: 4.2%
Source: US Census Bureau
Retail Sales data published by the US Census Bureau is a leading indicator that gives important information about consumer spending, which has a significant impact on the GDP. Although strong sales figures are likely to boost the USD, external factors, such as weather conditions, could distort the data and paint a misleading picture. In addition to the headline data, changes in the Retail Sales Control Group could trigger a market reaction as it is used to prepare the estimates of Personal Consumption Expenditures for most goods.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD faces the next hurdle at 0.6400
AUD/USD rose markedly and approached the key 0.6400 hurdle at the beginning of the week, always in response to rising weakness in the US Dollar and hopes of fresh stimulus in China.
EUR/USD keeps the upside target at 1.1000
EUR/USD extended further Friday’s recovery and traded at shouting distance from the YTD peaks near 1.0950 in response to increased selling pressure in the Greenback and the improved political scenario in Germany.
Gold consolidates around $3,000 ahead of Fed
Gold prices has started the week on a positive tone and maintains their trade around the key $3,000 mark per troy ounce on the back of the modest pullback in the Greenback and mixed US yields across the curve,
Crypto markets could gain $1 trillion as Gold price reaches $3,000: Tokenized-Gold expert explains
Tokenized-Gold assets hit a $1.8 billion market cap on Monday after the Gold (XAU) price marked new all-time highs above $3,000 per troy ounce. In an exclusive interview with FXStreet, RAAC CEO Kevin Rusher explains how tokenized Gold assets could impact the next crypto market recovery phase.
Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme Premium
Central bank bonanza – perhaps its is not as exciting as comments from the White House, but central banks still have sway. They have a chance to share insights about the impact of tariffs, especially when they come from the world's most powerful central bank, the Fed.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.