Gold prices failed to stabilize above $3,400 after a bullish breakout this week. The technical outlook highlights the recent indecision of gold bulls.
In the first two trading days of this week, spot gold prices rose by 2.4%, but the cumulative decline in the last three trading days of this week reached nearly 3%. The sharp fluctuations this week were due to the positive progress in Trump's trade negotiations, and the rebound in market risk appetite, which hit the safe-haven demand for gold.
Looking at next week, the economic calendar will provide several high-impact data releases. The Federal Reserve will announce its monetary policy decision after the policy meeting on July 29-30; the US Bureau of Labor Statistics will release the July employment report; and some important news such as the US-China trade negotiations may trigger the next major move for gold.
From a technical perspective, the current market short-term technical outlook highlights the hesitation of gold buyers. The daily chart shows that the RSI is still slightly below 50, and gold prices have difficulty staying away from the 20-day and 50-day MAs after breaking through these two levels earlier this week.
On the upside, 3450 constitutes the first resistance for gold prices. If it breaks through this resistance, gold prices will most likely hit the 3400 integer mark again.
On the downside, if gold prices remain below 3340, technical sellers may still be interested. In this case, 3310 can serve as the first support level, followed by the second support level near 3285.
A new week is about to begin, and I wish all traders good luck.
In the first two trading days of this week, spot gold prices rose by 2.4%, but the cumulative decline in the last three trading days of this week reached nearly 3%. The sharp fluctuations this week were due to the positive progress in Trump's trade negotiations, and the rebound in market risk appetite, which hit the safe-haven demand for gold.
Looking at next week, the economic calendar will provide several high-impact data releases. The Federal Reserve will announce its monetary policy decision after the policy meeting on July 29-30; the US Bureau of Labor Statistics will release the July employment report; and some important news such as the US-China trade negotiations may trigger the next major move for gold.
From a technical perspective, the current market short-term technical outlook highlights the hesitation of gold buyers. The daily chart shows that the RSI is still slightly below 50, and gold prices have difficulty staying away from the 20-day and 50-day MAs after breaking through these two levels earlier this week.
On the upside, 3450 constitutes the first resistance for gold prices. If it breaks through this resistance, gold prices will most likely hit the 3400 integer mark again.
On the downside, if gold prices remain below 3340, technical sellers may still be interested. In this case, 3310 can serve as the first support level, followed by the second support level near 3285.
A new week is about to begin, and I wish all traders good luck.
A qualified analyst should have a wolf-like sense of smell and seize every opportunity to make a profit in the market fluctuations. And I am doing this.
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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.
A qualified analyst should have a wolf-like sense of smell and seize every opportunity to make a profit in the market fluctuations. And I am doing this.
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.