XAU price fell yesterday due to the strong economic data and geopolitical issues. The tension between Russia and the western countries in relation to the Ukraine is still high, and the fightings between Israelis and Hamas militants in Gaza also remain in the spotlight. US Commerce Department reported that GPD rose to 4.0% in Q2 (prev. -2.1%). Economists forecasted a 3.0% rise. The inventories increases and acceleration of consumer spending led to widespread growth. Investors believe that the latest data reinforce the argument in favor of ending the QE program earlier and rising interest rates faster. The cost of XAU futures on COMEX fell today by $4.6 to $1,293.40 an ounce.
From the technical analysis view, XAU rate on the weekly chart (W1) after forming the third wave (1,178.22) drew the correction of wave-4 with resistance level on third wave 38.2% retracement. Currently, decreases can be expected.
Analysis and commentary prepared by members of the Consilium Invest team
