Gold Comes Under Selling Pressure As Bearish Pin Bars Weigh

FXOpen

Gold extended downside movement on Wednesday, dragging the price of precious metal to less than $1310 an ounce following the emergence of two bearish pin bars around the major resistance level. The short term sentiment remains bearish due Lower High in the recent upside rally.

Technical Analysis

As of this writing, the precious metal is being traded around $1307 an ounce. A hurdle may be noted around $1312, the 38.2% fib level ahead of $1322, the high of the bearish pin bar which emerged on Friday and then $1342, the 23.6% fib level.

gold fxopen

On the downside, the metal is expected to find a huge support near $1300, the confluence of 100 Daily Simple Moving Average (DSMA), 55 DSMA and psychological number ahead of $1287, the 50% fib level and then $1262, the 61.8% fib level. The sentiment will remain bearish in the short term as far as the $1322 resistance area is intact.

US Initial Jobless Claims

The US labor department is due to release the jobless claims report on Thursday as usual. According to the average forecast of different economists, the number of people who claimed jobless incentives during the week ended on August 04 remained 290K as compared to 289K in the week before. Generally speaking, higher jobless claims are considered negative for the economy, hence a worse than expected actual outcome will be seen as bullish for the precious metal and vice versa.

Ukraine Crisis

The reports regarding attack on Ukraine by Russia are keeping the yellow metal supported around the current levels because the geopolitical crisis raises demand for bullion as safe heaven investment. If the war breaks out, then there are pretty good chances that the precious metal may blast towards the $1400 handle.

Conclusion

Considering the technical outlook, selling the pair around current level appears to be a good strategy in short term as described above.

 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Shares

How Earnings Reporting Could Impact Netflix (NFLX) Share Price

Earnings season is gaining momentum. Today, after the close of the main trading session, Netflix (NFLX) is set to release its quarterly financial results.

Analysts are optimistic, forecasting earnings per share (EPS) of $7.08, up from $4.88 a

Commodities

XAU/USD Chart Analysis: Volatility at a Yearly Low

The daily chart of XAU/USD shows that the Average Directional Index (ADX) has reached its lowest level since the beginning of 2025, indicating a significant decline in gold price volatility.

Yesterday’s release of the US Producer Price Index

Forex Analysis

Pause in Dollar Rally: Weak Data and Powell Dismissal Rumours

Amid rising market volatility, the US dollar is losing ground: USD/JPY is correcting after a recent bullish impulse, while USD/CAD is retreating from the upper boundary of its medium-term sideways range. This corrective movement was triggered by disappointing

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.