Technical Analysis

GOLD Price Analysis – July 24, 2023

By LonghornFX Technical Analysis
Jul 24, 20232 min
Signal 2023 05 25 122622 002

Daily Price Outlook

On Monday, the price of gold finds it difficult to acquire momentum. The yellow metal is currently trading 0.24% lower than $1,961 for the day. Market participants are anticipating the Federal Open Market Committee (FOMC) meeting and the press conference by Fed Chairman Jerome Powell, as stated by Goldman Sachs. The price of gold in US dollars could be considerably impacted by these occurrences.

On Wednesday, the Federal Reserve (Fed) will disclose the results of its monetary policy meeting, and market participants anticipate a 25 basis point (bps) increase in interest rates. According to the CME FedWatch Tool, the likelihood of another Fed rate hike following the July meeting jumped to 28% from 15.9% last month.

This signals the potential end of the current rate-hiking cycle. This has contributed to the US Dollar's recovery and acted as a headwind for the Gold price. The focus will be on the monetary policy statement and comments from Fed Chair Jerome Powell after the meeting.

Following this, the European Central Bank (ECB) is also anticipated to raise borrowing costs by 25 basis points in their meeting to control high inflation. The prospects of further tightening from both central banks are limiting the rise of Gold prices.

However, concerns over China's economic growth, US-China trade relations, and geopolitical risks are preventing a significant decline in the Gold price.

GOLD Price Chart – Source: Tradingview
GOLD Price Chart – Source: Tradingview

 Gold (XAU/USD) Technical analysis

Gold prices have confirmed a break below the support line of the intraday bullish channel, indicating an upcoming decline towards the $1945.20 level. This suggests a bearish bias for today, and further confirmation of the bearish trend will occur if the price breaks below $1960.00.

However, it's important to note that this expected decline is temporary, and the bullish track is expected to resume later on. If the price breaks below the targeted level, it may face additional negative pressure, with the next target at $1913.15.

On the other hand, breaching the $1977.25 level will be a positive factor that could halt the current negative pressure and lead to a rise in the price.

Expected trading range for today: $1945.00 (support) to $1977.00 (resistance).



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