Resistance is at $1,783, a break above which could lead to a gain to $1,801. On the daily chart, gold is retesting a support at $1,769, the 61.8% projection level of a downward wave C from $1,959.01.
Silver eased 0.2% to $27.34 an ounce, but was poised for a third straight monthly rise, while palladium climbed 0.8% to $2,420.68 and was set to register its best month in a year with a more than 8% gain.
US retail sales rebounded sharply in January, while US producer prices increased by the most since 2009, suggesting inflation was starting to creep up.
Gold has started a consolidation, which may be confined in the range of $1,769-$1,805. The downtrend is expected to resume upon the completion of this consolidation.
The two-year US Treasury yield briefly touched a record low of 0.1049%. Benchmark 10-year yields eased slightly to 1.2771%, pulling away from the highest level since Feb. 27, 2020 as some investors judged that recent selling of fixed income had gone too far.
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A break below $1,827.93, however, will indicate a resumption of the downtrend towards $1,783. On the daily chart, gold could be consolidating within a big flat that developed from $1,764.29.