Today’s Gold Analysis Overview:
The Overall Gold Trend: bearish.
Today's Gold Support Points: $4100 – $4060 – $3970 per ounce.
Today's Gold Resistance Points: $4190 – $4275 – $4330 per ounce.
Today's Gold Trading Signals:
Bullish Scenario: Buy gold from the support level of $4050 with a target of $4240 and a stop-loss at $3990.
Bearish Scenario: Sell gold from the resistance level of $4260 with a target of $4100 and a stop-loss at $4300.
Note: These recommendations are suitable for medium-to-long-term traders, provided there is strict adherence to capital and risk management
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Daily Technical Analysis of Gold/US Dollar (XAU/USD):
Gold prices continue to face strong selling pressure as markets increasingly bet on the continuation of the US Federal Reserve's tight monetary policy. This has pushed the precious metal to its lowest level in three months amid a notable strength in the US dollar. On top licensed trading platforms, gold prices plummeted to the support level of $4,110 per ounce during Tuesday's trading session.
Overall, gold trading faces short-term challenges, such as expectations of a US interest rate hike, a strong dollar, and weak investor flows. Regarding the most significant factor influencing the market, both Deutsche Bank and Bank of America's Global Research department have revised their forecasts to include an interest rate increase in September.
Similarly, the US dollar remains strong amid expectations that the Federal Reserve will raise interest rates in September. The market's expectations for a rate hike were reinforced after the Fed indicated at its meeting last week the possibility of tightening monetary policy by the end of the year.
Currently, market prices on the London Stock Exchange (LSEG) indicate a 90% probability of the Federal Reserve raising interest rates in September, followed by another rate hike next year.
Technically, the overall trend for gold remains bearish. Breaking the $4100 support level strengthens the sellers' control of the trend and simultaneously pushes technical indicators closer to oversold levels. For example, the 14-day Relative Strength Index (RSI) is around 33, with oversold conditions at the 30 level. The MACD indicator continues to give negative signals, supporting the downward trend, while prices are moving below their key moving averages, which reinforces the likelihood of continued selling pressure in the short term.
Conversely, based on daily price action, an initial break of the current trend could occur if buyers manage to push the price of gold to the $4330 per ounce resistance level.
Trading Tips:
It is advisable for traders to monitor whether selling pressure continues or not before considering buying, while strictly managing risk given the ongoing uncertainty in the markets.
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