The United States (US) retail sales data released yesterday showed a significant increase for the July reading compared to expectations and the previous data which was 1.0%.
Following good retail sales data, this is seen to reduce some confidence in the decision of the Federal Reserve (FED) to reduce interest rate cuts.
Gold price reaction has shown a significant fall after the release of retail sales data.
Based on the daily chart, the price of gold is continuing the upward momentum after making a fall in reaction to the data published at the beginning of the New York session yesterday.
On the XAU/USD daily chart which measures the value of gold against the US dollar, yesterday's price fell from 2470.00 to around 2433.00 before rising again to the 2461.00 zone.
If the price wants to go higher, investors will wait for a reaction at the 2470.00 zone for the price to test at that important level.
If the price manages to pass the level of 2470.00, the next target is at the level of 2474.00 for the price to reach the following resistance.
On the other hand, if the price wants to continue its decline, the price reaction at the level of 2433.00 will be noticed by investors.
If the price manages to break the 2433.00 level, the next lower target is 2426.00.
