Gold prices remain in the uptrend, with the bullion refreshed six-year lows earlier this week. This is the thirteenth week of growth out of fourteen, and demand for the precious metal remains robust despite overbought conditions. On Thursday, however, the prices have settled around $1,1520 and struggled to challenge new highs. In early session on Friday, the yellow metal slipped below this level and turned slightly negative on the day.
The dollar gained after surprisingly strong US retail sales data, which capped the upside momentum in gold. Retail sales rose 0.7% last month after a 0.3% gain in June. The result showed that consumer spending remains healthy despite growing uncertainty over the US-China trade spat. In turn, strong numbers decreased the probability of a rate cut by the Federal Reserve, which plays into dollar’s hands and limits demand for the bullion.
Nevertheless, considering a number of risk factors from the trade war to Brexit and the US yield curve inversion, investors will likely continue to long the yellow metal as a safe haven amid the lingering global uncertainty. As such, after a possible bearish correction due to a partial profit taking in the short term, the bullion could target fresh long-term highs above $1,535.