- Gold price is looking to defend the key support yet again amid listless trading.
- Treasury yields, US dollar heal post-soft US CPI-led wounds ahead of Fed minutes.
- XAU/USD battle lines are well-defined near the $1,800 mark, where next?
Gold price is moving back and forth in a familiar range while trading close to the $1,800 mark, as the rebound in the US dollar and the Treasury yields keep bears in control. Markets don’t seem to be convinced that the Fed will alter its tightening cycle, in the face of the first signs of peak inflation, exerting downward pressure on the non-interest-bearing bullion. However, bulls continue to find comfort from growing recession fears amid renewed Chinese lockdown concerns and the deepening European gas crisis. Despite the listless trading over the past few days, XAU/USD remains on track to book the fourth weekly gain. Attention now turns towards the Fed July meeting’s minutes due for release next week for a fresh direction in the bright metal. In the meantime, the Fed rate hike expectations, growth fears and Fedspeak will continue to influence the metal price.
Also read: Gold Price Forecast: Losing bullish potential below $1,800
Gold Price: Key levels to watch
The Technical Confluence Detector shows that the gold price is defending the crucial support at $1,784, which is the convergence of the SMA50 one-day and the Fibonacci 23.6% one-week.
Should sellers find acceptance below the latter, the next downside cap at $1,780 will come into play. At that level, the Fibonacci 38.2% one-week and SMA10 one-day intersect.
The last line of defense for gold bulls is seen at the pivot point one-day S2 at $1,775.
Alternatively, sellers are aligned near $1,792 to guard the upside, the meeting point of the SMA10 four-hour and the Fibonacci 38.2% one-day.
Further up, the confluence of the previous week’s high and the pivot point one-week R1 at $1,796 will challenge the bearish commitments.
The $1,800 round figure and the monthly high of $1,808 will be next on buyers’ radars.
Here is how it looks on the tool
About Technical Confluences Detector
The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.