2. Point To Be Covered Today:
• XAU/USD Eyes A Sustained Move Below Key $1799 Support
• Gold Price: Key Levels To Watch
• Here Is How It Looks On The Tool
• Gold Futures: Further Consolidation Likely
• Gold Faces Extra Rangebound
• Gold (XAU/USD) Edges Higher
• Gold Four Hour Chart
• Gold Technical & Fundamental Overview
3. XAU/USD Eyes A Sustained Move Below Key $1799
Support
• Gold price is defending the $1800 mark but not for long.
• Gold remains on track for the first weekly loss in five.
• Gold: Possible correction to $1,800 as key resistance holds.
• Gold price is trading on the wrong footing this Friday, eyeing the first weekly
loss in five weeks, as the US dollar remains at the highest levels in three
months.
• With a volatile week coming to an end, concerns over the global economic
outlook amid Delta covid variant spread kept the dollar bids underpinned
4. XAU/USD Eyes A Sustained Move Below Key $1799
Support - I
• Meanwhile, upbeat corporate earnings reports on both sides of the Atlantic
and stimulus optimism refuelled reflated trades, lifting the Treasury yields at
gold’s expense.
• From a near-term technical perspective, gold price remains exposed to
downside risks, as a break of the support area near the $1799-$1795 region
appears inevitable.
• Gold trades now look forward to the US Markit Manufacturing and Services
PMIs for fresh trading impetus, all eyes now remain on the next week’s FOMC
meeting.
5. Gold Price: Key Levels To Watch
• The Technical Confluences Detector shows that gold is holding the lower
ground, with immediate support now seen at $1802, the Fibonacci 38.2% one-
day.
• Sellers will look for fresh entries below $1799, which is the confluence of the
Bollinger Band one-day Middle and Fibonacci 61.8% one-day.
• The next downside target is seen where a dense cluster of minor support
levels align around $1795.
• That zone is the convergence of the pivot point one-day S1 and Bollinger
Band four-hour lower.
6. Gold Price: Key Levels To Watch - I
• The intersection of the previous week’s low, pivot point one-week S1 and
Fibonacci 23.6% one-month at $1791 will be a tough nut to crack for gold
bears.
• On the upside, $1808 is likely to emerge as a powerful resistance if the
rebound picks up pace.
• At that point, the previous day’s high and Fibonacci 61.8% one-week merge.
• Acceptance above $1813, the confluence of the SMA10 one-day, SMA50
four-hour and pivot point one-day R1, is critical to reviving the bullish
momentum towards the SMA200 one-day at $1823.
8. Gold Futures: Further Consolidation Likely
•Open interest in gold futures markets increased for the
third session in a row on Thursday, this time by more
than 15K contracts considering flash data from CME
Group.
• Volume, instead, extended the choppy performance
and shrank by around 35.8K contracts.
9. Gold Faces Extra Rangebound
• Thursday’s decent gains in gold prices were on the back of
rising open interest, leaving the door open for further upside
in the very near term.
• However, the lack of direction in volume might encourage
some consolidation around the current $1,800 area per
ounce troy.
11. XAU/USD Drops Back Towards $1800 As USD
Catches A Fresh Bid
• Gold consolidates weekly losses, holds onto recovery
moves from two-week low.
• Sentiment stays mildly upbeat amid stimulus hopes, easing
covid woes and positive vaccine updates.
• ECB turned out a dull affair, preliminary PMIs for July will
be the key ahead of next week’s FOMC.
• Gold Weekly Forecast: Possible correction to $1,800 as key
resistance holds
12. Gold Price Has Returned To The Red Zone
• Gold price has returned to the red zone once again after a temporary reversal seen
on Thursday, as a test of the sub-$1800 levels keeps calling.
• Gold price is holding the lower ground while approaching the $1800 mark, as the US
dollar catches a fresh bid amid a mixed action in the Asian equities.
• Covid concerns remain unabated in Asia-pac region lifting the safe-haven demand
for the greenback.
• Interestingly, the US Treasury yields remain at higher levels, courtesy of the stimulus
optimism, which continue exert downside pressure on gold price.
• US President Joe Biden’s infrastructure bill is likely to come through on Monday
after the debate got voted out on Wednesday.
13. Gold (XAU/USD) Edges Higher
• On the economic data front, all eyes remain on the Eurozone and US
Preliminary Manufacturing and Services PMIs for fresh hints on the global
economic recovery, which could have a significant impact on the risk
sentiment and, in turn, gold price.
• Gold (XAU/USD) edges higher around $1,808, up 0.07% intraday, while
extending the bounce off a two-week low during Friday’s Asian session.
• Improving market sentiment seems to help the gold buyers to retake controls
inside a bullish chart pattern, falling wedge, of late.
14. Gold (XAU/USD) Edges Higher - I
• Behind the moves could be the US policymakers concerning the US President Joe Biden’s
infrastructure spending bill’s passage, despite being rejected for opening debate.
• On the same line was the relief to lawmakers offered by the US Congressional Budget
Office (CBO) when it said, per Bloomberg, “US lawmakers likely have until October or
November to raise or suspend the debt limit.”
• This will help the diplomats to have a bit more time than the July 31 deadline when the
debt limit will need a change from the $22 trillion level set in 2019.
• Also positive for the mood could be the latest covid updates from Australia suggesting a
lower count in Victoria. Additionally, the US vaccine panel’s support for COVID-19 booster
shots also favors the sentiment.
15. Gold (XAU/USD) Edges Higher - II
• It’s worth mentioning that the ECB’s dovish tilt and the US dollar’s recently lackluster
moves, coupled with off in Japan and a light calendar elsewhere, add to gold’s
short-term upside.
• Amid these plays, S&P 500 Futures print 0.23% intraday gains after Wall Street
benchmarks closed positive for the third day in a row, grinding lower though.
• Looking forward, market players will keep their eyes on the first readings of July’s
activity numbers from the key Western players, namely the UK, the US and the
European Union (EU).
• Although the readings won’t be a big surprise if marking a lower count, due to the
virus resurgence, any strong positive beat will be welcomed by the gold buyers with
zeal.
16. Technical Analysis
• Gold prices stay on the way to $1,810 resistance confluence comprising 200-SMA
and 50% Fibonacci retracement of June’s fall.
• With the MACD line teasing bullish cross over the signal line, the upside momentum
may gain traction should the commodity manages a clear break of the nearby key
hurdle.
• However, the resistance line of a two-week-old falling wedge bullish chart pattern
and 61.8% Fibonacci retracement (Fibo.), respectively around $1,819 and $1,825,
not to forget the monthly peak of $1,834, will be crucial to watch going further north.
• On the contrary, pullback moves may re-test the $1,800 round figure before
dropping back to the 38.2% Fibo. level surrounding $1,796.
• During the quote’s weakness past $1,796, the lower line of the stated wedge near
$1,792 will challenge the gold sellers.
18. Technical Overview
• Gold is holding the lower ground, with immediate support now seen at $1802, the Fibonacci 38.2%
one-day.
• Sellers will look for fresh entries below $1799, which is the confluence of the Bollinger Band one-
day Middle and Fibonacci 61.8% one-day.
• The next downside target is seen where a dense cluster of minor support levels align around $1795.
That zone is the convergence of the pivot point one-day S1 and Bollinger Band four-hour lower.
• The intersection of the previous week’s low, pivot point one-week S1 and Fibonacci 23.6% one-
month at $1791 will be a tough nut to crack for gold bears.
• On the upside, $1808 is likely to emerge as a powerful resistance if the rebound picks up pace. At
that point, the previous day’s high and Fibonacci 61.8% one-week merge.
• Acceptance above $1813, the confluence of the SMA10 one-day, SMA50 four-hour and pivot point
one-day R1, is critical to reviving the bullish momentum towards the SMA200 one-day at $1823.
19. Fundamental Overview
• Gold price is trading on the wrong footing this Friday, eyeing the first weekly loss in five weeks,
as the US dollar remains at the highest levels in three months.
• With a volatile week coming to an end, concerns over the global economic outlook amid Delta
covid variant spread kept the dollar bids underpinned.
• Meanwhile, upbeat corporate earnings reports on both sides of the Atlantic and stimulus
optimism refuelled reflated trades, lifting the Treasury yields at gold’s expense.
• From a near-term technical perspective, gold price remains exposed to downside risks, as
a break of the support area near the $1799-$1795 region appears inevitable.
• Gold trades now look forward to the US Markit Manufacturing and Services PMIs for fresh
trading impetus, all eyes now remain on the next week’s FOMC meeting.
