Gold price aims for more upside ahead of US Retail Sales data

• Gold price gathers strength for more upside ahead of US consumer spending data

• Fed policymakers see interest rates as sufficiently restrictive due to higher US Treasury yields.

• US Retail Sales growth is seen slowing to 0.3% in September.

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Gold price (XAU/USD) attempts to resume upside journey ahead of US President Joe Biden’s visit to Israel amid deepening Middle-East tensions and the speech from Federal Reserve (Fed) Chair Jerome Powell, which is expected to provide significant guidance on interest rates. Investors hope that Powell will favor a neutral monetary policy and join other Fed officials who recently said higher bond yields are sufficient to tame inflation.

Before key events in the economic calendar and the geopolitical front, investors will watch the United States Retail Sales data for September, which is one main gauge of consumer spending, the main driver of the US economy. Investors expect sales to grow at a slower pace than the previous month despite higher gasoline prices (Retail Sales data aren’t adjusted for inflation and thus reflect price changes). The volatility in the US Dollar is expected to diminish ahead of Retail Sales data.