The traditional yellow metal neutralized its price to the level of $2,570 after the release of the United States (US) Retail Sales data for August and the market is still cautiously awaiting the macroeconomic focus which is the FOMC meeting of the Federal Reserve (Fed) early Thursday morning.
At 9.35am, the price of gold was at $2,572.22, up 0.09% since it opened in early trading on Wednesday.
Meanwhile, the monthly US Retail Sales figure rose by 0.1% in August compared to a revised 1.1% increase recorded in July. It exceeded consensus expectations for a 0.2% decline according to data from the US Census Bureau.
The data could slightly reduce the probability of the Fed at 50 basis points at this week's September meeting. The potential downside decreased slightly to 65% from the previous 67%.
The expectation that the Fed will cut interest rates is positive for gold because it reduces the opportunity cost for holders.
Analysts are confident that the long-term outlook for the precious metal remains optimistic and that it is currently on a potential bullish cycle capable of opening a new ATH.
