GOLD Daily chart – Analysis Made By REVOLVER™ and ISOTRIUMPH™ Indicators.
GOLD Continues Upswing, Eyes on $2,010 amid Weakening USD
Despite experiencing a pullback from its daily peak, gold price continues to climb, reaching a two-month high. The precious metal is benefiting from the broad retreat of the US Dollar in sluggish markets. Adding to its upward momentum are positive headlines from China and declining yields.
The US Dollar saw a turnaround on Tuesday, extending its recovery on Wednesday, which prompted a slight dip in gold price from its eight-week highs. However, the greenback faced selling pressure again during American trading hours, pushing gold price back toward the $1,980 level.
Mixed US earnings results after market hours have made investors cautious, leading to a tepid risk tone. Despite this, the safe-haven US Dollar is losing ground due to expectations of a dovish stance from the US Federal Reserve (Fed), acting as a headwind for the currency.
Market expectations point to the Fed pausing its tightening cycle after a likely 25 basis points rate increase in July. Additionally, there is speculation that the Fed’s rate hike program may come to an end beyond September, given softer-than-expected inflation.
The outlook for gold price remains favorable if the US Dollar continues to weaken. Upcoming data on weekly Jobless Claims and Existing Home Sales in the United States could influence market sentiment and impact the USD-denominated gold price. Investors will closely monitor the Fed’s stance and US earnings reports to assess the metal’s future trajectory.
GOLD Daily Forex chart – Analysis Made By REVOLVER™ and ISOTRIUMPH™ Indicators.
TurnAround Point: 1972.00
Our preference
Long positions above 1972.00 with targets at 1988.00 & 1994.00 in extension.
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