The price of gold since the opening of the Asian market session today is seen to have traded cautiously at the $2,170 level following several announcements of the "Producer Price Index" and "Retail Sales" data reports scheduled for tonight.
The "Retail Sales" data report is expected to increase again by 0.8% in February compared to the 0.8% decrease that was reported in January 2024.
In addition, the "Producer Price Index'" data report is also expected to increase by 1.1% (Annual) in February compared to the previous reading of 0.9%.
If the data report tonight shows the strengthening of demand (Consumer) and the maintenance of high inflation then it will simultaneously be able to pressure the price of gold to be traded lower.
Technical Analysis
Based on the daily chart, yesterday's trading session saw gold prices rise above the $2,145 level. The price of gold needs to trade higher above the $2,185 level to extend the next increase to the $2,250 level.
On the other hand, if the level of $2,185 can be defended, gold will continue to be pushed to a lower level until $2,125-$2,116 if $2,145 is successfully broken through.
