GOLD Price Analysis – July 16, 2024
Daily Price Outlook
Gold price (XAU/USD) extended its upward trend, remaining well bid around the 2,440 level and hitting an intraday high of 2,443.
This upward movement is attributed to dovish comments from Federal Reserve Chair Jerome Powell regarding monetary policy, which have increased the appeal of precious metals. Lower borrowing costs make non-yielding assets like gold more attractive to investors.
Investors appear convinced that the US central bank will begin a rate-cutting cycle in September, a sentiment reaffirmed by Powell's recent remarks. This outlook has kept US Treasury bond yields depressed, benefiting the non-yielding yellow metal.
However, the pace of gold price gains could slow following Monday's economic data, which revealed weaker-than-expected second-quarter economic growth in China, reflecting sluggish domestic demand.
Impact of Fed Chair Jerome Powell's Dovish Comments on Gold Prices
On the US front, Federal Reserve Chair Jerome Powell's dovish comments on Monday bolstered precious metals like gold, as lower borrowing costs make them more attractive to investors. Powell indicated confidence in inflation nearing the Fed's target sustainably, suggesting potential interest rate cuts ahead.
Meanwhile, Fed Bank of San Francisco President Mary Daly noted a cooling inflation trend, supporting the view that inflation is heading towards 2%, though she emphasized the need for more data before deciding on rates.
Market expectations, reflected in CME Group’s FedWatch Tool, now show an 85.7% likelihood of a 25-basis point rate cut in September, up from 71.0% last week. Eyes are now on the upcoming US Retail Sales data for June for further economic insights.
Thus, the Federal Reserve Chair Jerome Powell's dovish stance and expectations of interest rate cuts have boosted gold prices, with lower borrowing costs enhancing the metal's attractiveness to investors seeking non-yielding assets.
Impact of China's Economic Slowdown and Trade Tensions on Gold Prices
On the other hand, gold prices face some challenges due to recent economic data indicating slower-than-expected growth in China's GDP for the second quarter, driven by weak domestic demand.
Meanwhile, the ongoing third plenum of the Chinese Communist Party's 20th National Congress, scheduled from July 15 to 18, underscores ongoing economic policy discussions amidst this economic slowdown.
Standard Chartered forecasts potential rate cuts by the People's Bank of China and adjustments to the reserve requirement ratio in response to the GDP deceleration. China's economic growth remains uneven, further complicated by escalating trade tensions; the US and EU recently imposed new tariffs on Chinese electric vehicles, impacting global trade dynamics.
Therefore, the potential economic slowdown in China, coupled with ongoing policy adjustments and trade tensions, may weigh on gold prices, as investors monitor developments that could affect global economic stability and demand for safe-haven assets.
GOLD (XAU/USD) - Technical Analysis
Gold (XAU/USD) is currently priced at $2,437.32, showing an increase of 0.19%. The 4-hour chart reveals critical price levels, with the pivot point at $2,445. Immediate resistance is found at $2,442.50, with further resistance at $2,453.71 and $2,466.69.
On the downside, immediate support is situated at $2,419.84, followed by $2,403.30 and $2,391.59.
The Relative Strength Index (RSI) is currently at 69, indicating that gold is nearing overbought territory, suggesting that traders should monitor for potential signs of a pullback. The 50-day Exponential Moving Average (EMA) is at $2,403.58, supporting the ongoing bullish trend.
Gold's recent performance has been buoyed by market expectations of a potential interest rate cut by the Federal Reserve in September. These expectations have kept U.S. Treasury yields depressed, making non-yielding assets like gold more attractive.
The metal's current bullish trend is further reinforced by global economic uncertainties and geopolitical tensions, which typically drive investors towards safe-haven assets.
Traders looking to enter the market should consider buying above $2,430, targeting a take-profit level at $2,445, while setting a stop-loss at $2,422 to manage potential downside risks. Maintaining these strategic levels is crucial as it allows traders to capitalize on the prevailing bullish momentum while mitigating potential losses.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Gold (XAU/USD) trades at $2404.275, down 0.01%, with a cautious bearish outlook below $2392.41.
- Immediate resistance at $2418.65, while support levels to watch are $2380.69 and $2370.16.
- RSI at 52 indicates a neutral market; 50-day EMA at $2388.37 acts as dynamic support.
Gold (XAU/USD) is currently trading at $2404.275, showing a slight decline of 0.01%. The 4-hour chart highlights key levels that traders should be aware of to navigate potential price movements. The pivot point is set at $2392.41, a critical juncture that can indicate the direction of future price action.
Immediate resistance is observed at $2418.65, with further resistance levels at $2430.04 and $2441.14. These levels are essential for traders to watch, as they can signal where upward momentum might face challenges.
Conversely, on the downside, immediate support is identified at $2380.69, followed by $2370.16 and $2355.08. These support levels suggest potential areas where prices could stabilize or rebound if selling pressure increases.
Technical indicators provide further insights into the current market sentiment. The Relative Strength Index (RSI) is at 52, indicating a neutral stance without strong overbought or oversold conditions.
This neutrality suggests that the market is balanced and not skewed heavily in one direction. The 50-day Exponential Moving Average (EMA) is positioned at $2388.37, serving as a dynamic support level.
The price remaining above this average could prevent further declines, signaling that buyers are stepping in at this level.
Given these observations, the outlook for Gold (XAU/USD) suggests a cautious bearish sentiment below the pivot point of $2392.41. Traders might consider an entry price to sell below $2405, aiming for a take profit at $2392.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Sell Below 2405
Take Profit – 2392
Stop Loss – 2416
Risk to Reward – 1: 1.8
Profit & Loss Per Standard Lot = +$1300/ -$1100
Profit & Loss Per Mini Lot = +$130/ -$110
GOLD Price Analysis – July 15, 2024
Daily Price Outlook
Gold price (XAU/USD) managed to stop its early-day losses and drew strong fresh bids around the 1,912 level. The reason for its upward trend could be attributed to the growing speculation for Fed rate cuts in September.
However, the gains in the gold price could be short-lived or limited as the US Dollar gained ground after an assassination attempt on former United States (US) President Donald Trump improved the US Dollar’s appeal. Nevertheless, the near-term outlook for the gold price remains firm as US bond yields weaken.
US Treasury yields fall as market expectations for the Fed to begin reducing interest rates from the September meeting have accelerated significantly.
Impact of Economic Indicators on Gold Prices and Market Outlook
On the US front, the outlook for gold remains strong as US bond yields weaken. Although the 10-year US Treasury yields edged higher to 4.20%, they are still near a four-month low as the lower yields reduce the opportunity cost of holding non-yielding assets like gold.
Market expectations for the Fed to start reducing interest rates from September have surged due to easing US consumer inflation and a cooling labor market. Last week's US Consumer Price Index (CPI) report for June showed inflation slowing faster than expected, boosting confidence in the ongoing disinflation process.
Additionally, the US Bureau of Labor Statistics reported on Friday that the Producer Price Index (PPI) for final demand increased by 2.6% in June, exceeding the expected 2.3%, indicating potential inflationary pressures in the production pipeline.
Therefore, the impact of this news on gold prices is positive. As US bond yields weaken and inflation eases, the opportunity cost of holding non-yielding assets like gold decreases.
Additionally, rising expectations for Fed rate cuts enhance gold's appeal as an investment, contributing to firmer near-term prices.
Moving on, this week investors will focus on US Retail Sales data for June, expected to show no change after a 0.1% growth in May, to be published Tuesday. On Monday, attention will be on Fed Chair Jerome Powell’s speech at 16:30 GMT, where he may discuss inflation and interest rates.
GOLD (XAU/USD) - Technical Analysis
Gold (XAU/USD) is currently trading at $2404.275, showing a slight decline of 0.01%. The 4-hour chart highlights key levels that traders should be aware of to navigate potential price movements.
The pivot point is set at $2392.41, a critical juncture that can indicate the direction of future price action.
Immediate resistance is observed at $2418.65, with further resistance levels at $2430.04 and $2441.14. These levels are essential for traders to watch, as they can signal where upward momentum might face challenges.
Conversely, on the downside, immediate support is identified at $2380.69, followed by $2370.16 and $2355.08. These support levels suggest potential areas where prices could stabilize or rebound if selling pressure increases.
Technical indicators provide further insights into the current market sentiment. The Relative Strength Index (RSI) is at 52, indicating a neutral stance without strong overbought or oversold conditions.
This neutrality suggests that the market is balanced and not skewed heavily in one direction. The 50-day Exponential Moving Average (EMA) is positioned at $2388.37, serving as a dynamic support level. The price remaining above this average could prevent further declines, signaling that buyers are stepping in at this level.
Given these observations, the outlook for Gold (XAU/USD) suggests a cautious bearish sentiment below the pivot point of $2392.41. Traders might consider an entry price to sell below $2405, aiming for a take profit at $2392.
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GOLD Price Analysis – July 12, 2024
Daily Price Outlook
Despite the release of softer-than-expected US consumer inflation figures, which boosted bets for a September interest rate cut by the Federal Reserve, Gold (XAU/USD) has failed to extend its three-day winning streak.
It edged lower around the 2,401 level, hitting an intra-day low of 2,400. This downward movement can be attributed to the uptick in US bond yields and renewed US dollar demand.
Additionally, the bullish sentiment surrounding the equity markets prompted some selling of the safe-haven precious metal during the European session on Friday.
Looking ahead, traders are now focused on the upcoming release of the US Producer Price Index (PPI) and the University of Michigan Consumer Sentiment survey for potential market-moving cues later in the North American session.
US Dollar Rebounds Despite Rate Cut Expectations, Bolstering Gold Prices
On the US front, the broad-based US dollar edged higher from a nearly three-month low despite expectations of a September rate cut by the Federal Reserve, driven by softer inflation figures.
This rebound was supported by a rise in US Treasury bond yields and better-than-expected Initial Jobless Claims, which fell to 222K for the week ending July 6. Investors now see a 90% chance of a rate cut in September, as per the CME Group's FedWatch Tool.
Additionally, Fed officials noted that improving inflation figures could justify one or two rate cuts this year, though they remain cautious about recession risks.
On the data front, the US Consumer Price Index (CPI) dipped in June for the first time in over four years, with the yearly rate slowing to 3% from 3.3% in May. Core CPI rose 0.1% for the month and 3.3% YoY, missing estimates. Investors now see over a 90% chance of a rate cut.
Therefore, the expectation of a Federal Reserve rate cut in September, driven by softer inflation data, has bolstered gold prices as lower interest rates typically increase the appeal of non-yielding assets like gold.
GOLD (XAU/USD) - Technical Analysis
Gold's recent rally has lost steam, with prices dipping slightly to $2409.45 per ounce. The precious metal now finds itself at a crucial juncture, testing the pivotal $2413.74 support level.
A decisive break below this level could trigger further downside momentum, potentially pushing prices towards the $2397.20 support zone. Conversely, a rebound from this level could signal renewed buying interest, with the potential to retest recent highs.
The 50-day Exponential Moving Average (EMA), currently at $2377.62, is a key indicator to watch. This moving average has served as a reliable support level in recent months, and a break below it would likely amplify bearish sentiment.
However, as long as prices remain above this EMA, the medium-term outlook remains cautiously optimistic.
The Relative Strength Index (RSI), a momentum indicator, currently sits at 68. While this suggests the market is overbought, it's important to note that gold has maintained elevated RSI levels during its recent uptrend.
Therefore, traders should exercise caution and wait for confirmation before acting on this signal.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot Point: $2413.74 is the key level to watch. A break below could trigger further downside pressure.
- 50 EMA: $2377.62 is a crucial support level. A break below could signal a significant shift in momentum.
- RSI: Currently at 68, suggesting overbought conditions. However, caution is warranted as gold has maintained elevated RSI levels during its recent uptrend.
Gold's recent rally has lost steam, with prices dipping slightly to $2409.45 per ounce. The precious metal now finds itself at a crucial juncture, testing the pivotal $2413.74 support level.
A decisive break below this level could trigger further downside momentum, potentially pushing prices towards the $2397.20 support zone. Conversely, a rebound from this level could signal renewed buying interest, with the potential to retest recent highs.
The 50-day Exponential Moving Average (EMA), currently at $2377.62, is a key indicator to watch.
This moving average has served as a reliable support level in recent months, and a break below it would likely amplify bearish sentiment. However, as long as prices remain above this EMA, the medium-term outlook remains cautiously optimistic.
The Relative Strength Index (RSI), a momentum indicator, currently sits at 68. While this suggests the market is overbought, it's important to note that gold has maintained elevated RSI levels during its recent uptrend.
Therefore, traders should exercise caution and wait for confirmation before acting on this signal.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Sell Below 2414
Take Profit – 2397
Stop Loss – 2425
Risk to Reward – 1: 1.5
Profit & Loss Per Standard Lot = +$1700/ -$1100
Profit & Loss Per Mini Lot = +$170/ -$110
GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Gold prices hover near key resistance at $2391.22, a breakout above which could trigger further gains towards $2402.89 and $2412.31.
- The 50-day EMA at $2371.18 and the immediate support at $2370.65 are crucial levels to watch for potential buying opportunities.
- The RSI indicates overbought conditions, suggesting a possible short-term pullback. Traders may consider waiting for a confirmed breakout or buying on dips with a tight stop-loss.
Gold prices are poised at a critical juncture, currently trading at $2382. The 4-hour chart reveals a complex interplay of support and resistance levels.
The immediate resistance stands at $2391.22, a level that gold bulls need to overcome to confirm a sustained upward move. A break above this resistance could propel prices towards the next targets at $2402.89 and $2412.31.
Conversely, the immediate support lies at $2370.65. A breach below this level could trigger a deeper retracement towards $2358.72 and $2349.50. The 50-day Exponential Moving Average (EMA), currently at $2371.18, acts as a dynamic support level that could bolster prices on any dips.
The Relative Strength Index (RSI) reading of 64 suggests that gold is in overbought territory, raising the possibility of a short-term pullback. However, the overall trend remains bullish, with the potential for further upside if buyers maintain momentum.
Given the current technical setup, a conservative approach would be to wait for a confirmed break above $2391.22 before initiating long positions.
Alternatively, aggressive traders could consider buying above $2379, with a stop-loss order placed below $2370. The initial target for profit-taking would be the pivot point at $2396.75.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2379
Take Profit – 2396
Stop Loss – 2370
Risk to Reward – 1: 1.8
Profit & Loss Per Standard Lot = +$1700/ -$900
Profit & Loss Per Mini Lot = +$170/ -$90
GOLD Price Analysis – July 11, 2024
Daily Price Outlook
China's Pause in Gold Purchases and Its Impact on Global Market Trends and Prices
China's central bank, the People’s Bank of China (PBOC), has halted its gold purchases for the second consecutive month, maintaining its reserves at 72.8 million troy ounces.
This marks a departure from its previous 18-month streak of continuous gold acquisitions since November 2022, during which China's consistent buying had driven gold prices to record highs.
However, the PBOC's decision signals a temporary pause in its strategy to bolster gold reserves, which had been a significant factor in the sustained upward trajectory of gold prices.
This development is likely to ease some of the upward pressure on global gold markets that had resulted from China's persistent purchasing activity over the past year and a half.
Impact of China's Pause in Gold Purchases on Global Markets and Prices
However, the reason behind this pause could be linked to the People’s Bank of China (PBOC) adjusting its strategy in response to fluctuating global gold prices and domestic economic conditions. Global gold prices have shown volatility, prompting the PBOC to reassess its buying patterns.
Furthermore, domestic factors such as inflation and economic growth rates may have influenced the decision. By halting gold accumulation, the PBOC might aim to stabilize its reserves at current levels or await more favourable market conditions before resuming purchases, impacting global gold markets and prices accordingly.
Therefore, the PBOC's pause in gold purchases could alleviate some of the upward pressure on global gold prices by reducing demand from one of the largest buyers.
This may lead to stabilization or even a slight correction in prices, depending on market reactions to China's altered buying behavior and broader economic factors influencing gold markets.
China's Quiet Gold Buying Continues Despite Official Pause; Federal Reserve Policy Shifts Market Focus
Despite the official pause in its public gold purchases, some experts believe they might still be acquiring it quietly, especially since prices are currently high.
Christopher Vecchio, who heads Futures & Forex at Tastylive, mentioned in an interview with Kitco News that regional data suggests ongoing Chinese gold purchases through late June.
He pointed out that while central bank purchases used to strongly affect gold prices, their influence has lessened recently. Now, attention has shifted more towards the Federal Reserve's decisions on interest rates, which are seen as having a bigger impact on where gold prices go next.
GOLD (XAU/USD) - Technical Analysis
Gold prices are poised at a critical juncture, currently trading at $2382. The 4-hour chart reveals a complex interplay of support and resistance levels.
The immediate resistance stands at $2391.22, a level that gold bulls need to overcome to confirm a sustained upward move. A break above this resistance could propel prices towards the next targets at $2402.89 and $2412.31.
Conversely, the immediate support lies at $2370.65. A breach below this level could trigger a deeper retracement towards $2358.72 and $2349.50. The 50-day Exponential Moving Average (EMA), currently at $2371.18, acts as a dynamic support level that could bolster prices on any dips.
The Relative Strength Index (RSI) reading of 64 suggests that gold is in overbought territory, raising the possibility of a short-term pullback. However, the overall trend remains bullish, with the potential for further upside if buyers maintain momentum.
Given the current technical setup, a conservative approach would be to wait for a confirmed break above $2391.22 before initiating long positions.
Alternatively, aggressive traders could consider buying above $2379, with a stop-loss order placed below $2370. The initial target for profit-taking would be the pivot point at $2396.75.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Gold prices increased to $2,368.020 amid a weaker US dollar and speculation of a Fed rate cut.
- Key support at $2,366.521 aligns with the 50 EMA, indicating a critical pivot point.
- Traders are advised to buy above $2,363, targeting a profit at $2,380 with a stop loss at $2,354.
Gold prices have shown a modest uptick in the latest trading session, buoyed by a slight dip in the US dollar. The precious metal is currently trading at $2,368.020, reflecting a 0.14% increase.
The gold market has seen consolidation around the $2,366.521 level, which aligns closely with the 50-period Exponential Moving Average (EMA).
The Relative Strength Index (RSI) at 54 indicates a neutral stance, suggesting that gold is neither overbought nor oversold at current levels. This equilibrium in RSI often precedes a significant price move, making it crucial for traders to watch closely for any emerging trends.
The key pivot point at $2,366.521 serves as a critical support level, reinforcing the current trading range. Immediate resistance is pegged at $2,379.352, followed by subsequent resistance levels at $2,391.215 and $2,402.888.
On the downside, immediate support is identified at $2,363.530, with next support levels at $2,355.365 and $2,354.352. These levels will be pivotal in determining the short-term trajectory of gold prices.
Traders should consider entering a buy position above $2,363, with a target of taking profit at $2,380 and a stop loss set at $2,354.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2363
Take Profit – 2380
Stop Loss – 2354
Risk to Reward – 1: 1.8
Profit & Loss Per Standard Lot = +$1700/ -$900
Profit & Loss Per Mini Lot = +$170/ -$90
GOLD Price Analysis – July 10, 2024
Daily Price Outlook
Gold (XAU/USD) has maintained its upward trend and remained well-bid around the 2,373 level, hitting an intra-day high of 2,374. The reasons for this upward trend could be linked to several factors, including geopolitical tensions, inflationary pressures, and a general shift towards safe-haven assets.
Additionally, central banks around the world have been consistently increasing their gold reserves, indicating strong institutional confidence in its value. These combined factors have contributed to the steady upward trend in gold prices, reinforcing its status as a valuable asset in uncertain times.
Impact of Speculation on Early Rate Cuts by the Federal Reserve on Gold Prices and the USD
On the US front, the broad-based dollar is weakening amid growing speculation that the Federal Reserve could begin cutting rates as early as September. This has pressured the USD and supported gold prices.
Federal Reserve Chairman Jerome Powell recently addressed the Senate Banking Committee, where he hinted at the possibility of an interest rate cut but refrained from specifying a date. His remarks suggest a data-dependent approach, leaving the market hopeful for a rate cut in the near future.
Therefore, the weakening US dollar, fueled by speculation of early rate cuts from the Federal Reserve, has supported gold prices.
Impact of Central Bank Gold Purchases on Gold Price Momentum
On the other side, the upward rally in gold prices has been further strengthened by consistent purchases from major central banks, despite the People’s Bank of China (PBoC) pausing its buying in May and June.
The overall demand from other central banks has effectively offset China’s absence. For example, India’s central bank acquired more than nine tons of gold in June, while the National Bank of Poland and the Czech National Bank bolstered their reserves by four and two tons respectively.
This widespread activity among central banks highlights strong global demand for gold that extends well beyond China.
According to Bert Melek, Head of Commodity Strategy at TD Securities, the ongoing purchases by these institutions signal broad and robust official sector support for gold, implying a bullish outlook for the commodity.
Despite the recent reduction in purchases by the PBoC, the strong demand from other central banks has significantly contributed to the upward momentum in gold prices, with projections now targeting levels as high as $2,475.
Therefore, the continued purchases by major central banks, despite China's recent pause, indicate robust global demand for gold. This strong institutional support suggests a bullish outlook, potentially pushing prices toward $2,475.
GOLD (XAU/USD) - Technical Analysis
Gold prices have shown a modest uptick in the latest trading session, buoyed by a slight dip in the US dollar. The precious metal is currently trading at $2,368.020, reflecting a 0.14% increase.
The gold market has seen consolidation around the $2,366.521 level, which aligns closely with the 50-period Exponential Moving Average (EMA).
The Relative Strength Index (RSI) at 54 indicates a neutral stance, suggesting that gold is neither overbought nor oversold at current levels. This equilibrium in RSI often precedes a significant price move, making it crucial for traders to watch closely for any emerging trends.
The key pivot point at $2,366.521 serves as a critical support level, reinforcing the current trading range. Immediate resistance is pegged at $2,379.352, followed by subsequent resistance levels at $2,391.215 and $2,402.888.
On the downside, immediate support is identified at $2,363.530, with next support levels at $2,355.365 and $2,354.352. These levels will be pivotal in determining the short-term trajectory of gold prices.
Traders should consider entering a buy position above $2,363, with a target of taking profit at $2,380 and a stop loss set at $2,354.
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GOLD Price Analysis – July 09, 2024
Daily Price Outlook
Gold prices (XAU/USD) have maintained their upward momentum and remained well bid around $2,363 per ounce and hitting an intraday high of $2,368. This surge is largely attributed to the weakening US dollar, which lost its ground on the back of the disappointing US employment data last week.
Furthermore, increased geopolitical tensions in the Middle East and political uncertainties in France are fostering a cautious market sentiment, bolstering gold prices.
Looking ahead, market participants are closely watching Fed Chair Jerome Powell's semi-annual Congressional testimony, along with speeches from Fed officials Michael Barr and Michelle Bowman. The upcoming release of US Consumer Price Index (CPI) inflation data on Thursday will also be crucial in shaping market expectations.
Impact of US Employment Data on the US Dollar and Gold Prices
On the US front, the broad-based US dollar is facing pressure as traders anticipate a Federal Reserve interest rate cut in September, spurred by last week's disappointing employment figures.
According to the CME FedWatch tool, there is now a 76% probability of a rate cut in September, up from 71% last Friday. This increasing expectation is contributing to the dollar's decline across financial markets.
On the data front, the US employment growth moderated in June, with Nonfarm Payrolls (NFP) increasing by 206,000, slightly above expectations of 190,000 but below May's revised figure of 218,000.
Concurrently, the Unemployment Rate rose to 4.1% from May's 4%. Wage growth, as indicated by Average Hourly Earnings, decelerated to 3.9% year-over-year in June from 4.1%, aligning with market forecasts.
Therefore, the anticipation of a Federal Reserve rate cut following weaker US employment data has softened the US dollar, boosting gold prices as investors seek safe-haven assets amid economic uncertainty.
Impact of Political Uncertainty and Chinese Demand on Gold Prices
Furthermore, gold prices could see additional upward momentum driven by cautious investor sentiment amidst political uncertainties in France and geopolitical tensions in the Middle East. Gold, traditionally considered a safe-haven asset during periods of turmoil, is increasingly appealing to investors seeking stability amidst global uncertainty.
However, the upward momentum in gold prices may face challenges as China, the world's largest gold consumer, kept its gold holdings unchanged for the second consecutive month in June, halting purchases after 18 months of consistent buying.
This pause in demand from a major buyer could alleviate some of the upward pressure on prices.
Gold prices could continue to climb amid global uncertainty, fueled by political tensions in France and the Middle East. However, China's pause in gold purchases after 18 months may ease upward pressure on prices.
GOLD (XAU/USD) - Technical Analysis
Gold Spot (XAU/USD) is currently trading at $2,359.260 on the 2-hour chart. The key pivot point is at $2,360.079 (Green line). Immediate resistance is observed at $2,367.000, with further resistance at $2,379.404 and $2,391.215.
On the downside, immediate support is located at $2,351.388, followed by $2,342.804 and $2,326.893. The 50-day Exponential Moving Average (EMA) is positioned at $2,360.079, while the 200-day EMA stands at $2,351.388.
The Relative Strength Index (RSI) is currently at 40.07, suggesting that the asset is approaching oversold territory. This level indicates potential buying interest may emerge if the RSI moves below 30. The 50-day EMA is at $2,360.079, closely aligning with the current price and acting as a pivot point for potential upward or downward movements. The 200-day EMA at $2,351.388 offers a critical support level that could determine the near-term direction of Gold.
For traders, a strategic entry point is recommended above $2,351 with a take profit level at $2,367. A stop loss should be set at $2,342 to manage risk effectively. Maintaining above the pivot point of $2,360.079 could indicate a bullish trend continuation, whereas falling below could reinforce a bearish outlook.
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