Gold Price Analysis: XAU/USD downtrend holds as technicals turn bearish

Gold is likely to open the week with intense selling pressure under the 200-day SMA.
XAU/USD continues to struggle as the US dollar strengthens, downside eyes $1,800.

John Isige FXStreet

Gold has retraced significantly after topping out at a nine-year high above $2,000 in August 2020. Recovery from the downtrend has proved to be an uphill battle for the bulls. Besides, the last two weeks have seen XAU/USD drop from the new yearly high at $1,950 to $1,825.

The pessimistic outlook has been validated after the precious metal dived under the ascending channel’s middle boundary. Intense overhead pressure is expected under the 200-day Simple Moving Average.

The moving average convergence divergence, or MACD, adds credence to the bearish narrative. This technical indicator, which follows the path of a trend and calculates its momentum, appears to be turning bearish on the daily chart. As the 12-day exponential moving average crossed under the 26-day exponential moving average, the odds for a bearish impulse increased significantly.

XAU/USD daily chart

Gold may throw the bearish outlook out the window if support at $1,820 holds firmly. Moreover, closing the day above the 200 SMA would encourage buyers to increase their entries. If enough volume is created behind the precious metal, gold will embark on a recovery journey targeting $1,900.

Author

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

British Pound weakens below 1.3450 as US-Iran uncertainty boosts safe-haven US Dollar

The GBP/USD pair loses ground to near 1.3425 during the early Asian session on Tuesday. Uncertainty surrounding US-Iran talks drives traders toward a safe-haven currency such as the US Dollar against the British Pound. All eyes will be on the US July jobs data, which is due later on Friday.

EUR/USD declines as US Dollar gains on Middle East uncertainty

EUR/USD remains subdued for the third successive day, trading around 1.1500 during the Asian hours on Tuesday. The pair continues to hold losses as the US Dollar finds support from ongoing uncertainty in the Middle East, despite lingering hopes for a diplomatic breakthrough between the United States and Iran.

Gold lacks bullish conviction amid US-Iran impasse, ahead of US jobs data

Gold is attempting a tepid bounce around $4,050 in Asian trading on Tuesday, stalling a two-day decline amid looming US-Iran risks, as markets brace for a slew of US jobs reports due later this week. US JOLTS Job Openings Survey is in focus on Tuesday.

Morgan Stanley cuts Circle price target to $38 as stablecoin growth stirs concerns

Circle (CRCL) shares came under pressure on Monday after Morgan Stanley downgraded the company to underweight and sharply cut its price target. Morgan Stanley lowered its price target for Circle to $38 from $106, citing concerns over slower growth in USDC circulation and increasing pressure on the stablecoin issuer's core revenue model.

NFP week: What awaits Bitcoin and Gold

This is an NFP week as markets brace for the release of a large influx of job market statistics. The data rollout begins with the JOLTS Job Openings report on Tuesday, continues with the ADP Employment report on Wednesday and Jobless claims on Thursday, and finishes with the Nonfarm Payrolls report on Friday.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.