Last night's weak Retail Sales data report was seen as giving new hope to gold investors when the price of gold last night closed at $2,004.
However, the gold price recovery "trend" that has been in effect since last night was seen to have stopped at the start of today's trading session.
This follows investors waiting for the latest indications of inflation data, namely the "Producer Price Index" (PPI) and "Consumer Sentiment" which are scheduled for tonight.
Markets expect the PPI data reading seen to be reported at 0.6% in January versus 1.0% the previous month.
If these two data reports are able to provide support for the fact that the Fed is "Hawkish", gold is expected to trade lower at the end of this week.
Apart from that, several Fed experts are expected to also give remarks tonight. Therefore, the output of data and statements scheduled for tonight will be seen as determining the "trend" next week.
Technical Analysis
Based on the daily chart, the price of gold has traded closed around the $2004 level. However, the structure of the daily chart is seen as favoring "bearish".
The price level of $1,993 will be a barrier to the further fall in gold prices before it surpasses the price of $1,984-$1,973.
However, if tonight's data report is seen as being able to support the gold price of $2,024 again, it will be seen as an obstacle if the price level of $2,008 can be penetrated.
