Global macro overview for 15/07/2016:
Real GDP data from China has surprised global investors as the published figures were better than expected. The second-quarter economic growth increased from 1.2% q/q to 1.8% q/q, 0.2% more than expected. Moreover, on the yearly basis, the Chinese GDP stayed at 6.7% level despite the expected slight decrease to 6.6%. Moreover, the industrial production and retail sales have surprised market participants as well, rising to the level of 6.2% y/y and 10.6% y/y respectively. In conclusion, good data from China added fuel to the fire and the positive sentiment is clearly visible on the market, with S&P 500 at new all-time highs and all risky currencies like the yen and euro gaining ground.
In the current risk-on situation, the gold metal is no longer attractive for investors as they like to buy it when the global outlook is uncertain or markets are in turmoil. This is why we will take a look at the gold technical picture on the daily time frame now. The double top pattern at the level of 1375 has made the price decrease to the level of 1320, just shy of technical support at the level of 1314. Moreover, there is a clear bearish divergence visible between the price and the momentum oscillator. The purple trend line might provide temporary dynamic support, but if the zone between the levels of 1304 - 1314 is violated, then the next support is seen at the level of 1249.
