Gold prices briefly dipped below $2,900 on Friday (2/14), but are expected to end the week with a solid gain of more than 0.80% as traders booked profits ahead of the weekend. Economic data in the United States (US) was mixed, although the US dollar hit a yearly low and US Treasury yields plunged. XAU/USD was trading at $2,883, down 1.48% on the day.

Retail sales in the United States fell sharply in January, weighing on the US dollar, which continued to weaken across the board. However, the precious metal benefited as traders squared off their positions amid fresh headwinds for gold, which usually push prices higher.

After the data, investors priced in more than one rate cut by the Federal Reserve (Fed). As a result, the US 10-year T-note yield fell six basis points to 4.472%.

Other data revealed that Industrial Production improved in January after posting disappointing figures in the previous month.

Gold's uptrend remains intact, despite the pullback and has hit a two-day low of $2,878. It must be said that the Relative Strength Index (RSI) has exited the overbought territory after holding there for most of February. Therefore, XAU/USD's decline may stall if buyers defend the February 12 intraday low of $2,864.

This reveals the first major support level as the psychological $2,850 level. Once surpassed, the October 31 cycle high turned support at $2,790 is next, followed by the January 27 swing low of $2,730.

Conversely, if buyers lift Gold prices above $2,900, the next resistance would be the all-time high of $2,942. A break above that level would open the way towards $2,950, followed by the $3,000 milestone for the gold metal.(Newsmaker23)

Source: FXstreet