GOLD Price Analysis – July 13, 2023

Daily Price Outlook

Currently, gold is trading at $1912.30 per troy ounce in US dollars, reflecting an increase from $1899.60 the previous day and $1817.00 a year ago. This equates to a 5.24% increase from last year and a 0.67% rise from the last market day.

The outlook for gold prices, represented as XAU/USD, seems positive as it encounters minor roadblocks around the $1,960 resistance level during the late Asian trading session.

The easing of US inflationary pressures, to a point where the Federal Reserve may only implement a single interest rate hike by year's end, is anticipated to boost the precious metal's upward trajectory.

As the second-quarter earnings season looms, the US-500 stock index is likely to exhibit some volatility despite the S&P 500 futures marking strong gains and US markets ending positively on Wednesday. A robust risk-on sentiment pervades the market.

After a five-day downward spiral, the US Dollar Index (DXY) appears to have steadied at 100.50, with reduced fears of a possible recession following a general easing in the US Consumer Price Index (CPI). The market will closely monitor the US Producer Price Index (PPI) data set to be released on Thursday.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Technical analysis

Gold prices are currently riding a strong upward trend, successfully breaking past the $1945.20 mark. A detailed examination of the chart reveals the completion of a 'double bottom' pattern, suggesting that this upward trajectory could continue in the coming trading sessions.

Our next objective is set at the $1977.25 point, and breaking past this level could trigger a further rally towards the $2000.00 mark, followed by an additional target of $2016.90.

Thus, we foresee an ongoing bullish trend in the intraday scenario, bolstered by the support from the EMA50 which is fueling this upward drive. However, it is crucial to bear in mind that a fall below the $1945.20 level could interrupt the projected rise and potentially swing the price back onto a bearish path.

Today's trading range is likely to oscillate between the support level at $1950.00 and the resistance level at $1980.00. All in all, the market trend for today is expected to lean bullish.