MCX GOLD TIPS FOR TODAY: BELOW 57600, SELL ON RISE TARGET 57200—57050, Trading Tips By Neal Bhai.
- US Retail Sales, China data dump eyed for fresh impulse.
- Recovery in United States yields, US Dollar weighs on gold price.
- Gold maintains its bullish stance, needs to clear the $1,924 resistance.
Gold Bears need validation
Although the Gold price triggered the first bearish signal in four the previous day, mixed figures of the United States Consumer Price Index (CPI) push the metal sellers to reconfirm the bounce in the US Treasury bond yields and the US Dollar.
As a result, today’s US Retail Sales for February, expected -0.3% MoM versus 3.0% prior, will be important to watch. Ahead of that, China’s February month data dump, including the Fixed Asset Investment, Industrial Production and Retail Sales could direct immediate moves in the Gold price. That said, China’s Retail Sales is expected to improve to 3.5% versus -1.8% prior while the Industrial Production growth could also rise to 2.6% from 1.3% in the previous readings. However, the Fixed Asset Investment is likely to have eased to 4.4% YoY so far in 2023, till February, versus 5.1% prior.
Easing of SVB, Signature Bank fallout risk also weighs on Yellow Metal
fears from the latest fallouts of the Silicon Valley Bank (SVB) and Signature Bank also favor the Gold bears.
Recently, US Senate Banking Committee Chairman Sherrod Brown and Federal Reserve Governor Michelle Bowman ruled out chatters suggesting the grim conditions of the US banking industry.
Alternatively, Wall Street Journal (WSJ) reported that a raft of tougher capital and liquidity requirements are under review, as well as steps to beef up annual “stress tests” that assess banks’ ability to weather a hypothetical recession, according to a person familiar with the latest thinking among U.S. regulators. “The rules could target firms with between $100 billion to $250 billion in assets, which at present escape some of the toughest requirements,” per WSJ.
That said, the Gold bears seem convinced of the latest cautious optimism in the market and the US Dollar rebound. However, the key statistics from the United States and China need to validate the gold (yellow metal) fall.
Credit Suisse CEO: The situation in the US is not comparable and factually has nothing to do with CS
Credit Suisse CEO: Heightened attrition in a moment of change is not surprising there is no issue hiring from the market.
In the wake of last week’s collapse of Silicon Valley Bank, gold (Yellow Metal) and silver (White Metal) prices have soared as Treasury yields declined. Retail traders have responded by increasing downside bets in Gold and SILVER. This can be seen by looking at IG Client Sentiment (IGCS). IGCS tends to function as a contrarian indicator. With that in mind, if retail traders continue boosting bearish bets, could gold and silver see further upside?