Gold's Upside Momentum Stalls as USD Corrects

The gold price extended gains, trading near $1,920 per troy ounce in the early European session, supported by a slight US Dollar (USD) correction. Positive Chinese economic data, including a 4.6% YoY increase in retail sales and 4.5% growth in industrial production, boosted market optimism.

The USD retreated from its recent high of around 105.20 on the US Dollar Index (DXY), but a substantial decline is limited due to caution regarding the US Federal Reserve's hawkish monetary policy stance. US Treasury yields recovered, with the 10-year yield at 4.30%, potentially supporting the USD.

Recent positive US economic data, such as Initial Jobless Claims and Retail Sales figures, suggest a healthy economic environment influencing market sentiment.

The US preliminary Michigan Consumer Sentiment Index release will be closely monitored for a minor decline from 69.1 to 69.5 during the North American session.

Gold, after reaching the 1900 level, retraced back towards the 1920 range. The current trend remains bearish, and further selloffs are possible since the fundamentals are still not in favor of gold. If a new selloff begins, 1885 could serve as the next significant support level for gold.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1950	1942	1931	1910	1900	1885