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Gold Analysis: Will Gold Prices Return to the $3400 Peak?

By Mahmoud Abdallah

Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of tra...

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Today’s Gold Analysis Overview:

  • The overall Gold Trend: In a new bullish rebound.
  • Today's Gold Support Levels: $3300 – $3260 – $3190 per ounce.
  • Today's Gold Resistance Levels: $3366 – $3380 – $3420 per ounce.

Gold Analysis Today 02/07: Return to the $3400 Peak? (Chart)

Today's gold trading signals update:

  • Sell Gold from the resistance level of $3385 with a target of $3260 and a stop-loss at $3400.
  • Buy Gold from the support level of $3290 with a target of $3370 and a stop-loss at $3240.

Technical Analysis of Gold Price (XAU/USD) Today:

For two consecutive trading sessions, spot gold prices have been attempting a bullish rebound, with gains extending to the $3358 per ounce resistance level. Recently, gold's price index increased gains after recent selling pressure pushed it towards the $3246 per ounce support level at the start of this week's trading. also, the dollar's significant losses ahead of the US jobs data announcement at the end of the week have helped gold bulls push higher again.

According to performance across gold trading platforms, gold prices are rising steadily for the second consecutive session, despite a shift in market sentiment towards risk-taking. Currently, there is still demand for some safe-haven assets like gold, as geopolitical and macroeconomic concerns continue to act as potential catalysts. Furthermore, the weakness of the US dollar further enhances gold's appeal as a safe haven.

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Trading Tips:

The strategy of buying gold on every dip is still valid and stronger.

According to gold analysts' forecasts, the recent decline in gold prices is natural, and a strong return to gains is likely soon. The $3400 per ounce resistance will remain an important bullish target. If prices move steadily above the $3360 resistance, that peak will quickly become the next target in the coming days. The decline in the US dollar has further boosted gold's gains amid concerns over the ballooning US government deficit, as investors monitor the slow progress of a huge tax-cutting and spending bill in the Senate.

Uncertainty surrounding trade agreements with major countries also supported the gold market.

Uncertainty surrounding trade agreements with major countries has also provided support to the gold market. Separately, US President Donald Trump has threatened to impose a new level of tariffs in Japan, just over a week before the July 9 deadline for re-imposing higher tariffs. Additionally, expectations of interest rate cuts by the Federal Reserve later this year continue to bolster gold's appeal.

Currently, with cautious anticipation, investors are now awaiting US jobs data for further clues on the Federal Reserve's policy path.

Technical Indicators Preparing for an Upswing:

Based on the performance on the daily timeframe chart, the 14-day Relative Strength Index (RSI) has returned to settle above the midline, providing good momentum for bulls to push higher, provided there are supporting factors. These factors, as always emphasized, include global trade and geopolitical tensions, increased gold purchases by global central banks, and a weak US dollar. At the same time, the MACD (Moving Average Convergence Divergence) lines are moving further away from oversold territory and turning upwards, which could be confirmed by a break above the $3400 per ounce resistance.

Overall, the gold market may find support amid lower yields and expectations of monetary easing. Financial markets are currently pricing in three interest rate cuts in the United States during the second half of the year, which could support non-yielding assets like gold. Furthermore, concerns regarding the Federal Reserve's independence may also drive investors to buy gold again.

Ready to trade our Gold daily analysis and predictions? We’ve made a list of the best Gold trading platforms worth trading with.

Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.

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