Technical Analysis

GOLD Price Analysis – July 28, 2023

By LonghornFX Technical Analysis
Jul 28, 20232 min
Signal 2023 05 25 122622 002

Daily Price Outlook

The Gold price (XAU/USD) has experienced a gain of 0.19% and is now valued at $1950 after rebounding from its biggest daily loss since June 02. However, it is on track for its first weekly decline in four weeks. The rise in price reflects the market's cautious optimism amidst mixed concerns regarding the Federal Reserve's future actions and the ongoing tensions between the US and China, which are expected to be influenced by the release of top-tier US data. 

As stock futures show slight gains and yields rise, market sentiment has weakened. This situation is caused by a battle between strong US growth data and the central bank's inability to convince policy hawks. Moreover, fears of new US-China conflicts have emerged due to recent measures taken by Washington. 

These factors have prompted investors to seek the safety of gold, leading to a recovery in the XAU/USD. Expectations of a September rate hike by the Federal Reserve are also playing a role in shaping market sentiment towards gold. 

Looking ahead, the Core Personal Consumption Expenditure (PCE) Price Index for June will be a key factor to monitor. It is the Fed's preferred inflation gauge, and the expected figure of 4.2% year-on-year, compared to the previous 4.6%, will be closely watched for insights into inflation trends and potential implications for the central bank's future monetary policy decisions. 

This data will play a crucial role in guiding the market direction leading up to next week's employment data release. As investors assess these fundamental factors, they will continue to influence the movements of the XAU/USD price in the market.

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

GOLD(XAU/USD) - Technical Analysis

The price of gold has consolidated above the level of $1945.20, indicating potential signs of a bullish rebound. The stochastic positivity observed on the four-hour timeframe suggests a bullish bias in the upcoming sessions, with the price potentially aiming to test the level of $1977.25.

As long as the price remains above $1955.00, the overall positive scenario remains valid, reinforcing the positive outlook. However, if the price breaks below $1945.20, the suggested bullish trend may come to a halt, leading to a potential decline in the price.

For today's trading, the expected range is between support at $1940.00 and resistance at $1975.00. The expected trend for today is bullish.



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