Today’s Gold Analysis Overview:
- The overall Gold Trend: Bullish.
- Today's Gold Support Levels: $3355 – $3330 – $3240 per ounce.
- Today's Gold Resistance Levels: $3388 – $3410 – $3460 per ounce.
Today's Gold Trading Signals:
- Sell gold from the resistance level of $3400, target $3290, and stop loss $3440.
- Buy gold from the support level of $3310, target $3390, and stop loss $3290.
Technical Analysis of Gold Price (XAU/USD) Today:
For three consecutive trading sessions, the immediate gold price has risen, with gains extending to the $3382 per ounce resistance level before stabilizing around $3373 per ounce. Gold's gains have increased in recent trading sessions amid new pressure on the US dollar since the announcement of disappointing US employment figures. The gold price index has recovered from its recent losses that touched the $3268 per ounce support level. According to performance on gold trading companies' platforms, last Friday's gains were the largest single-day gain for gold in two months.
Why Did Gold Prices Rise Again?
According to the view, monitoring, and forecasts of gold analysts, the demand for gold has increased again, driven by growing expectations of a Federal Reserve interest rate cut, in addition to demand for the yellow metal as a safe haven. Data released on Friday showed that US job growth was weaker than expected in July, suggesting potential weaknesses in the labor market.
This brought the possibility of a Fed interest rate cut in September back to the forefront, with financial markets now pricing in an 81% probability. Additionally, President Donald Trump unveiled new tariffs last week—ranging from 10% to 41%—on imports from dozens of countries, set to take effect on August 7, reigniting global trade tensions.
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Trading Tips:
Traders are advised to buy gold bullion on every price decline and to not take risks, no matter how strong the entry levels, while carefully monitoring the factors that influence the market.
Technical Indicators are Turning Upward
According to performance on the daily timeframe chart, the recent gains in the gold price have moved the 14-day Relative Strength Index (RSI) to a reading of around 54, moving away from the midline and with plenty of time and room to achieve stronger gains before reaching overbought territory. At the same time, the MACD indicator's movement is turning upward again. The $3400 per ounce resistance will remain a legitimate target for bulls if positive market momentum factors persist.
The US Dollar is Affected by Rate Cut Expectations
According to forex currency market trades, the US Dollar Index, which measures the US currency's performance against a basket of other major currencies, fell below 99 at the start of this week's trading, continuing its losses from the previous session as a weak July jobs report fueled expectations of a Fed rate cut.
According to an official announcement, US non-farm payrolls increased by only 73,000 jobs last month, which is significantly less than forecasts, while downward revisions of 258,000 jobs for previous months indicated a deeper weakness in the labor market. Accordingly, financial markets are now almost fully pricing in a rate cut in September, with expectations of more than 63 basis points of monetary easing by the end of the year. Adding to market tensions, President Donald Trump fired the Bureau of Labor Statistics commissioner, Erica MacIntarffer, on Friday, accusing her of falsifying jobs data.
Investors also assessed the broader impact of the comprehensive retaliatory tariffs imposed by Trump on growth and inflation. In trading, the US dollar declined further against the British Pound, and the Australian and New Zealand Dollars, while rising slightly against the Euro and the Yen.
One of the factors influencing gold trading is US bond yields. According to recent performance, the yield on the 10-year US Treasury note reached a three-month low of 4.20% on Monday, remaining stable at a decline of about 20 basis points since its high in the previous session after the revised jobs data reflected a much weaker labor market than previously thought. The Treasury also lowered yields, announcing that it would increase the size of its buyback operations for bonds and inflation-protected securities.
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