Gold in the US fell 1.46% to $1,993.2 per ounce, while the Shanghai gold contract for August delivery dropped 0.83% to 449.66 yuan per gram.
Looking at the latest data, US retail sales increased by 0.4% month-on-month in April, which was lower than the expected 0.8% but higher than the previous value of -1%. Industrial production in April also grew by 0.5% compared to the previous month, surpassing expectations and the previous value. As for the US debt ceiling issue, negotiations have entered the second week without reaching any relevant agreement. There is a concern that the US may default as early as June 1, which would undoubtedly have a significant impact on the economy and financial markets. As time goes on, the probability of risk assets being sold off increases, and precious metals may experience an initial decline, but they are likely to rebound earlier than other commodities. From a technical chart perspective, gold in the US has fallen below the key psychological level of $2,000 per ounce, and there is currently no clear signal of a short-term bottoming out. It is important to monitor the support provided by the 60-day moving average.
