Gold Price Forecast: XAUUSD hangs by a thread above $1,700.00
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER
XAUUSD Current price: $1,729.91
- A White House memo dismissing recession chances underpinned the market’s mood.
- The greenback remains strong amid recession fears and ahead of US inflation data.
- XAUUSD has room to test $1,676.73, the 2021 yearly low.
Gold Price remains under pressure on Tuesday, falling to $1,723.15 a troy ounce at the beginning of the day, a fresh 2022 low. Financial markets remain in a risk-off mood amid fears of a global recession in the middle of soaring inflationary pressures.
The dollar kept rallying as investors seek safety, although the greenback pared gains during the American session. A slightly better market mood came from a White House memo, which noted that US macroeconomic data, including the June jobs report, are not consistent with a recession. The document added that “labor market strength puts the US in a better position than many other countries to transition to lower inflation and steady growth.”
XAUUSD managed to bounce back and currently hovers around $1,730 as equities shrug off the early dismal sentiment. European indexes managed to post modest gains, while Wall Street trades in the green at the time being. At the same time, US Treasury yields eased from their weekly peaks as investors await US inflation figures.
The country will release the Consumer Price Index on Wednesday, which is expected to show inflation reached a new multi-decade high of 8.8% YoY in June. The core inflation reading, however, is expected to have eased from 6% to 5.8% in the same period.
Gold Price short-term technical outlook
The daily chart for XAUUSD hints at persistent selling interest. The bright metal reached a lower low, far below bearish moving averages. Additionally, technical indicators have extended their declines within oversold territory without signs of bearish exhaustion.
Gold is neutral-to-bearish in the near term. The 4-hour chart shows that a bearish 20 SMA continues to cap advances, but losing its bearish strength. The longer moving averages, however, remain firmly bearish far above the shorter one. Technical indicators, on the other hand, remain flat within negative levels, lacking directional strength.
Support levels: 1,720.30 1,708.50 1,695.90
Resistance levels: 1,741.60, 1,752.50 1,765.00
XAUUSD Current price: $1,729.91
- A White House memo dismissing recession chances underpinned the market’s mood.
- The greenback remains strong amid recession fears and ahead of US inflation data.
- XAUUSD has room to test $1,676.73, the 2021 yearly low.
Gold Price remains under pressure on Tuesday, falling to $1,723.15 a troy ounce at the beginning of the day, a fresh 2022 low. Financial markets remain in a risk-off mood amid fears of a global recession in the middle of soaring inflationary pressures.
The dollar kept rallying as investors seek safety, although the greenback pared gains during the American session. A slightly better market mood came from a White House memo, which noted that US macroeconomic data, including the June jobs report, are not consistent with a recession. The document added that “labor market strength puts the US in a better position than many other countries to transition to lower inflation and steady growth.”
XAUUSD managed to bounce back and currently hovers around $1,730 as equities shrug off the early dismal sentiment. European indexes managed to post modest gains, while Wall Street trades in the green at the time being. At the same time, US Treasury yields eased from their weekly peaks as investors await US inflation figures.
The country will release the Consumer Price Index on Wednesday, which is expected to show inflation reached a new multi-decade high of 8.8% YoY in June. The core inflation reading, however, is expected to have eased from 6% to 5.8% in the same period.
Gold Price short-term technical outlook
The daily chart for XAUUSD hints at persistent selling interest. The bright metal reached a lower low, far below bearish moving averages. Additionally, technical indicators have extended their declines within oversold territory without signs of bearish exhaustion.
Gold is neutral-to-bearish in the near term. The 4-hour chart shows that a bearish 20 SMA continues to cap advances, but losing its bearish strength. The longer moving averages, however, remain firmly bearish far above the shorter one. Technical indicators, on the other hand, remain flat within negative levels, lacking directional strength.
Support levels: 1,720.30 1,708.50 1,695.90
Resistance levels: 1,741.60, 1,752.50 1,765.00
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.