Today’s Gold Analysis Overview:
- The overall Gold Trend: Bearish.
- Today's Gold Support Levels: $3,355 – $3,320 – $3,260 per ounce.
- Today's Gold Resistance Levels: $3,400 – $3,430 – $3,480 per ounce.
Today's Gold Trading Signals:
- Sell gold from the resistance level of $3,410, with a target of $3,300 and a stop loss of $3,440.
- Buy gold from the support level of $3,320, with a target of $3,410 and a stop loss of $3,300.
Technical Analysis of Gold Price (XAU/USD) Today:
Continued pressure on the US dollar and rising global geopolitical tensions continue to support gold bulls in their upward push. The gold price index reached a peak of $3,390 per ounce, the closest point to the psychological resistance level of $3,400 per ounce, which has often been noted as crucial for anticipating new record bullish breakthroughs in the coming days. The price of gold is now around $3,380 per ounce.
Adding to the positive momentum in the gold bullion market, recent expectations of a US interest rate cut by the Federal Reserve have increased market demand. The US services PMI released by the Institute for Supply Management (ISM) for July showed near-stagnant growth, declining employment, and rising price pressures, adding to recent signs of a slowing labor market following a weaker jobs report.
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Overall, the weak data has reinforced market expectations that the Federal Reserve could cut US interest rates twice before the end of the year, with the first move likely in September. Supporting this view, San Francisco Federal Reserve President Mary Daly stated earlier this week that the time for an interest rate cut is approaching, citing a slowing labor market and no signs of sustained inflation caused by tariffs.
Furthermore, the gold market also benefited from Trump's recent wave of tariffs and renewed concerns about the independence of the Federal Reserve following the resignation of Governor Kugler, giving President Trump an opportunity to nominate a replacement who supports lower US interest rates.
Will gold prices rise above $3,400?
According to gold analysts' expectations, the upward trajectory for gold prices is still strong, and the gold price index has a chance of reaching a peak of $3,400 per ounce. The 14-day Relative Strength Index (RSI) is currently hovering around 55, moving away from its midpoint and supporting bulls. Meanwhile, the MACD indicator is turning higher. Overall, technical indicators still have time and gains to go before reaching overbought territory.
The US dollar remains stable, according to forex trading. The US Dollar Index (DXY), which measures the performance of the US currency against a basket of other major currencies, stabilized below 99, maintaining its decline from a two-month high of 100.1 reached on Friday, amid fresh evidence of a weak US economy and risks of a decline in global trade flows. Recently, data compiled by the Institute for Supply Management (ISM) showed that US service sector activity virtually stalled in July, sharply contradicting expectations of faster growth, while employment indicators in both the services and manufacturing sectors declined. Overall, this data exacerbated fears of an economic slowdown, as more than 250,000 nonfarm payroll jobs were removed from the data compiled over the past two months due to significant data revisions.
As a result, financial markets increased interest rate futures, betting on the Federal Reserve cutting interest rates at its next meeting, and two 25-basis-point cuts this year.
Meanwhile, Indian Prime Minister Modi indicated that his country would continue purchasing Russian energy, and the Brazilian government arrested former President Bolsonaro, two conditions that US President Trump stated would lead to the imposition of additional tariffs this week.
Trading Advice:
Traders advise buying gold on dips and avoiding risky highs despite the continued gains.
Currently, the gold market is benefiting from several factors, including the renewed uncertainty fueled by US President Trump's dismissal of the head of the Bureau of Labor Statistics shortly after the data release. According to commodity market analysts, the potential loss of confidence in US economic statistics could lead to the US losing its appeal to investors, enhancing gold's appeal as a safe haven.
Ready to trade today’s Gold prediction? Here’s a list of some of the best XAU/USD brokers to check out.