Gold Price Forecast: XAUUSD oscillates above $1,770 as focus shifts to US Retail Sales

• Gold price is displaying lackluster performance above the critical hurdle of $1,770.00.
• The DXY has turned sideways as the focus has shifted to the US Retail Sales data.
• A situation of decline in inflation along with a significant rise in retail sales indicates robust retail demand.

Gold price (XAUUSD) is juggling in a chartered territory above the critical hurdle of $1,770.00 in the Asian session. The precious metal has turned sideways amid obscurity in markets ahead of the US midterm elections. However, the street is expecting a clear win of Republicans for the House of Representatives.

The US dollar index (DXY) is struggling to cross the immediate hurdle of 107.00 as declining odds for the continuation of the current pace in rate hikes by the Federal Reserve (Fed) are capping the upside. Also, rising demand for US government bonds has crippled yields. Meanwhile, S&P500 futures have extended their recovery after witnessing pessimism on Monday.

Going forward, the US Retail Sales data will remain in focus. As per the projections, the economic data is seen at 0.9% vs. the prior release of 0%. October month’s core Consumer Price Index (CPI) has declined to 0.3% vs. the prior release of 0.6%. The situation of decline in price growth along with a significant rise in retail sales indicates that the retail demand is robust.

Gold technical analysis

On a daily scale, gold prices have overstepped the 200-period Exponential Moving Average (EMA) at $1,760.00. The asset has formed a ‘Dragonfly Doji’ candlestick pattern in an uptrend, which indicates that dips have been considered as a buying opportunity by the market participants.

Also, the bullish range trading by the Relative Strength Index (RSI) (14) indicates more upside ahead.

Gold daily chart