Today’s Gold Analysis Overview:
- The overall Gold Trend: Remains bullish.
- Today’s Gold Support Levels: $3318 – $3300 – $3260 per ounce.
- Today’s Gold Resistance Levels: $3360 – $3380 – $3420 per ounce.
Today’s Gold Trading Signals:
- Sell gold from the resistance level of $3380 with a target of $3290 and a stop loss of $3400.
- Buy gold from the support level of $3280 with a target of $3370 and a stop loss of $3250.
Technical Analysis of Gold Price (XAU/USD) Today:
Despite the recent strength of the US dollar, the gold price indicator has shown upward stability. During yesterday’s session, instantaneous gold prices jumped to the $3377 per ounce resistance level. However, on Thursday, it faced profit-taking sales, causing the gold price to settle around $3328 per ounce at the time of writing this analysis. Technically, the trend for gold prices remains upward, and according to gold analysts’ forecasts, this performance will continue as long as prices remain around and above the $3300 per ounce resistance.
Based on the performance of technical indicators, the 14-day RSI (Relative Strength Index) is still around the midline, indicating neutral performance until both bears and bulls gain enough momentum to move in either direction in the coming days. The MACD (Moving Average Convergence Divergence) indicator also shows neutral performance. Overall, and based on the daily chart’s performance, the gold price is expected to move towards the psychological $3400 per ounce resistance if bulls first return to the vicinity of the $3365 and $3382 per ounce resistance levels, respectively. Conversely, a move by bears towards the $3270 per ounce support would be significant for anticipating further losses.
Today, gold trading will be influenced by developments in Trump’s trade wars. Also, announcements regarding central bank gold purchases and the performance of the US dollar in the markets.
Trading Tips:
Dear TradersUp trader, we prefer buying gold on every price dip, but do not take excessive risks.
Why Did Gold Prices Retreat?
According to performance on gold trading platforms, gold prices fell, relinquishing previous session gains, as the US dollar regained strength following the subsiding uncertainty surrounding the Federal Reserve Chair’s position. While reports suggested that President Donald Trump considered firing Federal Reserve Chair Jerome Powell, he later denied these claims, though he reiterated his criticism of interest rate policy. In the meantime, a stable US Producer Price Index (PPI) reading for June indicated stable wholesale prices, suggesting that tariffs might impact the economy less than initially feared, contrary to the increase seen in the June Consumer Price Index (CPI) report.
On the trade front, the EU’s chief trade official traveled to Washington on Wednesday for tariff talks with senior US trade representatives. Tensions between the US and China also eased with the lifting of the AI chip ban and a new trade agreement with Indonesia, alleviating trade concerns and reducing gold’s appeal as a safe haven.
According to forex currency market trading, the US Dollar Index (DXY) rose to 98.7 today, Thursday, recovering slightly after a volatile previous session that ended lower amidst renewed concerns about the Federal Reserve’s independence. Investors had been worried by reports suggesting President Donald Trump might dismiss Federal Reserve Chair Jerome Powell, but the turmoil subsided after he denied it, calling it “highly unlikely.”
On the economic data front, US producer prices unexpectedly stabilized in June, supporting the notion of interest rate cuts later this year. Investors are now awaiting US retail sales data, scheduled for release later today at 3:30 PM Cairo time, for further clarification.
In the context of trade developments, Trump stated on Wednesday that the United States would likely stick to 25% tariffs on imports from Japan and hinted at the possibility of a new trade agreement with India, following his announcement of a deal with Indonesia on Tuesday.
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