GOLD (February 17) prolongs consecutive decline

17 Feb 2023

Gold prices are extending their three-day decline today, following a sharp reversal on Thursday near $1,850. Buying interest around the US Dollar remains unabated amid hawkish (FED) expectations.

Strong US Nonfarm Payrolls data was hit by PPI. Furthermore Retail Sales rebounded 3.0% MoM, while Core Retail Sales also increased 2.3% vs 0.8% estimate. US economic data combined with recent belligerent comments from policymakers continue to boost the appeal of the US Dollar and at the expense of unprofitable Gold prices.

Gold prices are once again challenging bullish commitments below support turned resistance at $1836. The precious metal is bracing for strength for a sustained break of support from the Jan. 5 low at $1825.

Trading recommendation:

Buy soup at the price range 1823 - 1820

Stop Loss: 1816

Take profit 1: 1835
Take Profit 2:1844
Take profit 3: 1850

Note: Always set TP and SL in all trading cases