Gold price plummets below $2,900 amid profit-taking, weak US Retail Sales – FXStreet

• Despite the decline on Friday, Friday is set to increase by 0.80% over the week.
• US retail sales will plummet, driving the weakening of the US dollar and Treasury yields.
• Investors cut prices with one or more Fed rate reductions, boosting the long-term appeal of bullion.

Gold prices on Friday are below $2,900, but will close the week with solid profits above 0.80% as traders book profits more than weekends. Although US economic data was mixed, greenback hit annual lows and the US Treasury plunged. Xau/USD is $2,883, down 1.48% daily.

Retail sales in the US plummeted in January, putting pressure on greenbacks, which continues to weaken completely. However, Golden Metal benefits from traders who squared their positions amid the tailwinds of bullion.

After the data, investors cut multiple interest rates through the Federal Reserve. As a result, the 10-year T-note yield in the US fell from 6 basis points to 4.472%.

Other data revealed that industrial production improved in January after registering disappointing figures the previous month.

Daily Digest Market Movers: Gold Prices dive in our harvest failed, soft USD

• The US 10-year Treasury bonds earned 5 basis points (BPS), down 4.48%.
• The actual US yields inversely proportional to bullion prices, immerse the 4 basis points, a tailwind for Xau/USD, at 2.041%.
• US retail sales, which was contracted by -0.9% moms in January, fell sharply to the expected -0.1% despite an increase in December figures by 0.7%.
• In January, industrial production rose to 0.5% mama, slowing from the 1% expansion in December, but exceeding the forecast 0.3% increase.
• The World Gold Council (WGC) has revealed that the central bank has purchased more than 1,000 tons of gold for the third consecutive year in 2024. Go to WGC data.
• The funding rate amount is the 2025 Federal Reserve priced at 38.5 basis points.

Xau/USD Technical Outlook: Gold Prices Refund After All-Time Highs

The rising trend in gold prices remains the same, but it continues to follow, reaching a two-day low of $2,878. The Relative Strength Index (RSI) should be said to have left the territory that was over-acquired after staying there for most of February. So if buyers keep their daily lows of $2,864 on February 12th, the drop in Xau/USD could cease.

This revealed the initial key support level as a psychological $2,850 mark. Cycle High on January 31st gave support for $2,790, followed by swing Low on January 27th to $2,730.

Conversely, if a buyer exceeds the gold price of $2,900, the next resistance will be an all-time high at $2,942. The latter offence will disrupt the path to $2,950, followed by a $3,000 milestone in Golden Metal.