Daily Price Outlook
Gold prices (XAU/USD) reached a three-month low as investors sought refuge in the Federal Reserve's hawkish stance and disappointing economic data from China.
Despite keeping the interest rate unchanged at 5.0–5.25%, the US central bank signaled a shift in its policy, putting an end to the series of rate hikes.
The market reacted to the positive economic projections and remarks from Jerome Powell during the July meeting, which impacted the XAU/USD pair.
Meanwhile, weaker retail sales and industrial production figures from China, combined with higher US Treasury bond yields, provided some optimism for gold bears.
However, the Federal Reserve's cautious approach to data and the rate cut by the People's Bank of China kept the XAU/USD pair uncertain.
Gold Prices Experienced a Decline, Testing the $1940 Area On
Wednesday. However, the decrease was accompanied by declining open interest and volume, indicating that a prolonged decline is unlikely at the moment. The $1930 per troy ounce level has proven to be strong support for gold.
For the fifth consecutive day, gold prices faced selling pressure on Thursday, nearing the May low during the Asian session.
GOLD Price Chart – Source: Tradingview
Gold - Technical Analysis
Gold prices ended on a sour note yesterday, breaking below the level of $1,945.20 and settling below it once again. This reinforces the expectation of a continued bearish trend in the upcoming sessions, with the potential for the price to target our next downside objective at $1,913.15.
The bearish channel remains in control, orchestrating the anticipated downward movement and finding steady support from the EMA50 indicator.
It's worth noting that if gold manages to break above the levels of $1,945.20 and $1,958.40, it could alleviate the current selling pressure and set the stage for a potential attempt to regain the primary bullish trend.
In terms of trading expectations for today, the anticipated range is between the support level at $1,915.00 and the resistance level at $1,950.00. Traders will be keeping a close eye on these levels to gauge the price action in the market.
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