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XAU USD, demand for gold remains low
XAU USD is correcting sideways, trading at 1830 and showing no signs of a trend reversal. Gold quotes are in a rather narrow range of 1800 – 1880, having shown a slight increase the day before after the decision of the US Federal Reserve to raise the interest rate from 1.00% to 1.75%, which indicates the market's inability to calculate the consequences of the actions of the American regulator.

In any case, even a local increase in quotes does not mean a global change in trend, which remains negative. This clearly demonstrates the ratio of the positions of sellers and buyers on the stock exchange. According to the latest report of the US Commodity Futures Trading Commission (CFTC), the balance of contracts continues to remain on the side of sellers and, based on current positions, they hold 71.880K contracts, while buyers retain 23.852K contracts. There is a significantly larger gap in the positions of swap dealers: 83.939K contracts were registered for purchase, and 245.231K for sale. In the previous week, however, the dynamics of the change in the balance was in favor of buyers: they liquidated 3.376K positions, while sellers reduced 4.580K positions. Neither side is building up its assets, suggesting low overall demand for the metal.

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On the daily chart of the asset, the price is trading within the local side channel, holding in the middle of the range. Technical indicators are in a quite strong sell signal state: the fast EMAs of the Alligator indicator are below the signal line, and the histogram of the AO oscillator is trading in the sell zone, forming descending bars.

Support levels: 1807, 1752 | Resistance levels: 1848, 1895

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Gold - Quotes are preparing to renew the June maximum
On the one hand, investors see gold as a proven inflation hedge, but on the other hand, the US dollar is actively gaining in value against the backdrop of the "hawkish" rhetoric of the US Federal Reserve regarding the tightening of the main parameters of the national monetary policy. Last week, the regulator raised the interest rate by 75 basis points to 1.75% and announced its readiness to adjust the rate further if the situation in the economy requires this. The next meeting of the department is scheduled for July 27, and the dynamics of the national currency and the gold rate will depend on its results.

The long-term trend in the XAU USD pair is downwards. Last week, market participants unsuccessfully tested the resistance at 1877, and the price fell to the support level of 1806. After the decision of the US Federal Reserve on the interest rate, the asset strengthened, and at the moment, the trading instrument is in the middle of the corridor 1877 – 1806. If the resistance level of 1877 is broken, then a further increase to 1918 is possible, and in case of the breakdown of the support level of 1806, an update of the May low and a further decrease to the area of 1753 is expected.

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The medium-term trend is upwards. Last week, market participants tested the key support at 1807 – 1799. The zone was held, which led to positive dynamics to renew the high of June in the 1878 area.

Resistance levels: 1877, 1918 | Support levels: 1806, 1790, 1753

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XAU USD - Metal quotes are developing a downward trend
Investors are in no hurry to open new trading positions ahead of the publication of inflation statistics from the UK, as well as the speech of the head of the US Federal Reserve, Jerome Powell, who, as analysts hope, will outline the immediate prospects for monetary policy. So, some agency representatives said they were not opposed to another rate hike by 75 basis points, and a more conservative position still suggests an increase of only 50 basis points, after which a pause will be required to assess the measures taken.

Quotes of gold, traditionally protective assets, are supported by growing fears about a slowdown in the global economy. Also, the geopolitical risks associated with the development of a military conflict in Ukraine are not weakening yet, while the countries of the world are forced to deal with the consequences of a sharp increase in energy prices. Analysts are confident that rapid inflation on a global scale and a slowdown in economic growth can catalyze stagflation in the US economy, and the US Federal Reserve's measures to tighten monetary policy will be insufficient. It, in turn, will allow gold to regain investor interest and overcome the level of 2000.

An additional negative factor for the metal is the increase in the yield of US Treasury bonds amid expectations of further actions by the American regulator. As new signals for the asset, there is the talk about a possible restriction of Russian gold imports by European countries in the next sanctions packages from the EU. In particular, Denmark has previously announced such a possibility.

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Resistance levels: 1843.37, 1857.27, 1869.49, 1878.84 | Support levels: 1823.09, 1800, 1775, 1752.87

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Gold price loses momentum
Gold price fluctuates around the EMA50 that forms intraday resistance against the price, noticing that stochastic has positive momentum to reach the overbought areas, waiting to motivate the price to rebound bearishly and resume the bearish trend, which targets 1810 followed by 1780.25 levels as next main stations.

Therefore, our bearish overview will remain valid unless the price rallied to breach 1850 and hold above it.

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The expected trading range for today is between 1810 support and 1850 resistance.

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XAUUSD - Fibonacci analysis

D1
On the daily chart, the price reversed at 1868.00 (correction of 23.6%) and corrected downwards as part of a descending fan. Currently, the quotes are preparing to test the level of 1812.00, fixing below which will give the prospect of further decline up to the level of 1726.50 (extension of 61.8%). If the price consolidates above the center line of Bollinger Bands (1838.00), the growth may resume to the levels of 1868.00 (correction 23.6%) and 1902.50 (correction 38.2%). However, this variant of the movement is seen as less preferable, since the indicators point to the continuation of the downtrend: Bollinger Bands and Stochastic are reversing downwards, and MACD is stable in the negative zone.

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W1
On the weekly chart, the price dropped to 1811.00 (correction of 61.8%), which is currently being tested. Consolidating the price below it will give the prospect of further decline to the area of 1782.00 (opposite fan line 38.2%). Otherwise, growth will resume to the levels of 1844.50 (correction of 50.0%), 1878.00 (correction of 38.2%). Technical indicators don't provide a clear signal: Bollinger Bands are directed horizontally, MACD is near the zero line and its volumes are insignificant, and Stochastic has reversed downwards.

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In the near future, it seems possible that the price will continue to decline with targets at the levels of 1782.00 (opposite fan line 38.2%, W1) and 1726.00 (extension of 61.8%, D1). If the quotes consolidate above 1838.00 (the center line of Bollinger Bands), growth will be able to resume to 1868.00 (correction of 23.6%, D1) and 1878.00 (correction of 38.2%, W1).

Resistance levels: 1838, 1868, 1878 | Support levels: 1811, 1782, 1726

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XAU USD - The pair may grow.
 
If the assumption is correct, the XAU/USD pair will grow to the levels of 2000–2070.42. In this scenario, critical stop loss level is 1784.69.
 
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Gold price shows negative trades now, reinforcing the expectations of continuing the bearish trend in the upcoming sessions, reminding you that we are waiting to visit 1780.25 followed by 1750 levels as next main stations, while holding below 1818 represents the first condition to continue the suggested decline.

The expected trading range for today is between 1780 support and 1825 resistance.

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The expected trend for today: Bearish
 

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XAUUSD - gold stays at record lows
Gold positions came under pressure on Friday amid the publication of a stronger report on the US labor market: the Unemployment Rate remained at 3.6%, while Employment Change rose by 372 thousand, well ahead of the projected 268 thousand, which allows investors to hope for continued tightening of monetary policy by the US Federal Reserve. According to the CME FedWatch indicator, more than 92% of traders are confident in the "hawkish" rhetoric at the next meeting of the regulator, as well as in the adjustment of the value by 75 basis points at the end of this month.

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Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is expanding, making way to new record lows for the "bears". MACD is going down, keeping a fairly stable sell signal (located below the signal line). Stochastic has reached its lows and is trying to reverse upwards, indicating risks of oversold instrument in the ultra-short term.

Resistance levels: 1752.87, 1775, 1784.31, 1800 | Support levels: 1730, 1720, 1700

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