Gold Price Analysis: Dip-buying should help limit any meaningful slide


  • Gold struggled to capitalize on its early uptick to over one-week tops.
  • The pullback might still be seen a buying opportunity near $1720 level.

Gold extended its steady intraday pullback from over one-week tops and was last seen trading near the lower end of its daily trading range, around the $1730 region.

The pullback lacked any major catalyst and could be solely attributed an intraday USD rebound, which tends to undermine demand for the dollar-denominated commodity.

Given Friday's sustained break through the $1720 horizontal resistance, which coincided with 100-hour SMA, the set-up still seems tilted in favour of bullish traders.

The positive outlook is further reinforced by bullish oscillators on 4-hourly/daily charts, which support prospects for the emergence of some dip-buying at lower levels.

Hence, any subsequent fall might still be seen as a buying opportunity near the mentioned confluence resistance breakpoint amid a weaker tone around the equity markets.

That said, a convincing break through the $1720 support zone might prompt some technical selling and accelerate the fall back towards challenging the $1700 mark.

On the upside, the $1744-45 region, closely followed by the $1750 level now seems to act as immediate resistance, which if cleared might be seen as a fresh trigger for bulls.

The commodity might then aim to retest multi-year tops, near the $1765 level, en-route a near two-month-old ascending channel resistance, around the $1780 region.

Gold 1-hourly chart

fxsoriginal

Technical levels to watch

XAU/USD

Overview
Today last price 1733.12
Today Daily Change 3.72
Today Daily Change % 0.22
Today daily open 1729.4
 
Trends
Daily SMA20 1719.34
Daily SMA50 1684.74
Daily SMA100 1634.41
Daily SMA200 1565.08
 
Levels
Previous Daily High 1737.78
Previous Daily Low 1712.96
Previous Weekly High 1737.78
Previous Weekly Low 1693.78
Previous Monthly High 1765.38
Previous Monthly Low 1670.72
Daily Fibonacci 38.2% 1728.3
Daily Fibonacci 61.8% 1722.44
Daily Pivot Point S1 1715.65
Daily Pivot Point S2 1701.89
Daily Pivot Point S3 1690.83
Daily Pivot Point R1 1740.47
Daily Pivot Point R2 1751.53
Daily Pivot Point R3 1765.29

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD: Bulls keep the reins with eyes on 0.7000 ahead of China CPI/PPI

AUD/USD portrays a fourth attempt to pierce the key 0.7000 threshold. Broad US dollar weakness, upbeat equities and commodities helped Aussie to ignore pandemic fears. China inflation data, Australian housing market figures and US Jobless Claims to decorate the calendar.

AUD/USD News

Gold: Will it be a smooth journey to the all time high?

The daily chart shows an acceleration away from the top of the flag pattern. The price has now broken out of the blue resistance line which was the previous consolidation high back in 2011 after the price dropped from the all-time high.

Gold News

USD/JPY: There is a big Fib confluence target on the downside at 106.90

USD/JPY has been dropping steadily throughout the session and broke the previous wave low of 107.24. This makes a new lower low lower high formation on the hourly chart after the previous wave low was a resolute support zone.

USD/JPY News

Look East for market direction

When the stock market of the world’s second largest economy jumps more than 450 points, or 8%, in a week, it is time to sit up and take notice. The Shanghai Composite index, which acts as the benchmark for Chinese stocks, is now at 2018 levels.

Read more

WTI on the move to fresh session highs, testing $41 the figure

We are now over 1% higher on the day despite the crude oil inventories in the United States swelling by 5.7 million barrels in the week to July 3, information that was provided by the Energy Information Administration. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures