Gold Price Forecast: XAUUSD bears look unconvinced awaiting US Retail Sales

Gold price is extending its pullback from a new three-month high of $1,787. But XAUUSD downside appears capped ahead of United States Retail Sales, FXStreet’s Dhwani Mehta reports.

Gold teases rising wedge breakdown on the 4H chart

“US Dollar’s fate will hinge on the Retail Sales data, which is expected to tick higher to 1.0% in October on a monthly basis while excluding Autos, the gauge is seen rising by 0.4% in the reported month. An unexpected decline in the US Retail volume could reinforce expectations of a smaller Federal Reserve rate increase, which could trigger a fresh USD selling wave while reviving the Gold price upsurge once again.”

“Gold has breached the rising trendline support at $1,775 on a four-hour time frame. Bears need a four-hourly candlestick close below the latter to confirm a rising wedge breakdown. Even if the bearish pattern is validated, Gold buyers may find immediate support in the rising 21-Simple Moving Average (SMA) at $1,768.”

“On the upside, buyers need to rescale the wedge support-turned-resistance at $1,775 to resume the uptrend toward $1,780. The next relevant upside barrier is seen at the multi-week high of $1.787, as bulls prepare to take out the $1,800 threshold.”

See – US Retail Sales Preview: Forecasts from seven major banks, big boost in October