XAUUSD fell sharply on Tuesday (July 15) as the US Dollar 
DXY gained significantly after the US CPI report was released. As of now (July 16), gold is trading at 3,326 USD/oz, equivalent to an increase of only 2 USD in the day. The US Consumer Price Index (CPI) in June was in line with expectations but higher than the previous value. The surge in the Dollar after the US released the June CPI is the main reason for the pressure on gold prices so far.
• Data released by the US on Tuesday showed that the US CPI increased by 2.7% compared to the same period last year in June, in line with expectations, but higher than the 2.4% in May.
• The US CPI rose 0.3% month-on-month in June, in line with market expectations but up from a 0.1% increase, the largest increase since January this year.
• In addition, the US core CPI rose 2.9% year-on-year in June, up from 2.8% in May, while the core CPI in June rose 0.2% month-on-month.
The market generally believes that US President Trump's tariff policies have increased price pressures, prompting the Federal Reserve to wait and see what further action to take. Federal Reserve Chairman Powell previously said he expected prices to rise in the summer.
The market is still expecting the first rate cut in September. Investors are looking ahead to Wednesday's U.S. producer price index data for more information on the Federal Reserve's move.
Since gold does not yield interest, it typically performs well in low-interest-rate environments, whereas high-interest-rate environments or expectations of future rate hikes put pressure on gold prices.
Technical Outlook Analysis
XAUUSD On the daily chart, gold is trading in a fairly narrow range after 2 sessions of downward adjustment, but the specific trend is still unclear, as sent to readers throughout last week, the technical conditions mainly show a sideways accumulation movement. After testing the 0.236% Fibonacci retracement level, gold was unable to overcome this resistance, and the decline from this position brought the gold price close to the support of 3,310 USD and then the area of the original price point of 3,300 USD with the 0.382% Fibonacci retracement.
With the technical conditions not giving a specific trend as they are now, for gold to be able to have a new bullish cycle it needs to move the price action above the 0.236% Fibonacci retracement level, then the target would be around $3,400 in the short term, more than $3,430. On the other hand, if gold falls below the 0.382% Fibonacci retracement level again, it could be a good signal for an expectation of a bullish cycle, then the target would be around $3,246 in the short term, more than the 0.50% Fibonacci retracement level.
The relative strength index is hovering around 50, indicating that the market is hesitant in terms of momentum and is not leaning towards a specific trend.
During the day, with the current sideways accumulation, gold will be noticed by the following technical levels.
Support: 3,310 – 3,300 – 3,292 USD
Resistance: 3,240 – 3,250 – 3,371 USD
SELL XAUUSD PRICE 3383 - 3381⚡️
↠↠ Stop Loss 3387
→Take Profit 1 3375
↨
→Take Profit 2 3369
BUY XAUUSD PRICE 3304 - 3306⚡️
↠↠ Stop Loss 3300
→Take Profit 1 3312
↨
→Take Profit 2 3318
Note
Gold prices experienced a "roller coaster" of more than $50 when Trump was rumored to want to fire Fed Chairman Powell, causing investors to panic and seek shelter, pushing gold prices to skyrocket.Note
Note
🔴Spot gold lost the $3,330/ounce mark, down 0.53% on the day.
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🔰| Forex trading
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🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
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🧩Forex signals have a high win rate
🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.