Analysis of XAU/USD: Gold Price Falls for 4 Consecutive Days
FXOpen
As shown on the XAU/USD chart, Monday, 22 July marked the fourth consecutive day of declining gold prices. The change from the historical peak reached on Wednesday is around -3.5%.
Bearish sentiment is driven by:
→ Market participants' assessment of prospects due to the change of the Democratic Party's presidential candidate in the US.
→ Caution in anticipation of economic news. On Thursday at 15:30 GMT+3, US GDP data will be released. On Friday at the same time, the Core PCE Price Index data will be published.
Market participants may also be influenced by the psychological level of $2500.
Can the Gold Price Fall Further?
Technical analysis of the XAU/USD chart provides valuable insights:
→ In June, the gold price was within the range of 2290-2385. The rise to July's peak corresponds to a target calculated by the range height: 2385 + (2385 - 2290) = 2480;
→ After reaching a record on 17 July, the price failed to hold above the May peak, which is a bearish sign;
→ The XAU/USD chart shows increasing support points for a descending channel (shown in red), which may form a corrective movement within a broader upward trend (shown in blue).
Bulls may take advantage of the gold price being near the support block of 2365-2385, which is formed by:
→ The former resistance at 2385;
→ The median lines of the blue and red channels.
However, if we see a weak rebound from this block, it may indicate that the gold price is indeed in a corrective phase.
Start trading commodity CFDs with tight spreads (additional fees may apply). Open your trading account now or learn more about trading commodity CFDs 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.
Latest articles
Weekly Market Insights with Gary Thomson: US Inflation, UK GDP, Chair Warsh Testimony, and Earnings
In this video, we’ll explore the key economic events and market trends, shaping the financial landscape. Get ready for insights into financial markets to help you navigate the week ahead. Let’s dive in!
In this episode of Market
GBP/AUD Analysis: The Tug-of-War Begins
Oil is back in the driver's seat, and both the pound and the aussie are feeling its grip. The Bank of England held rates at 3.75% in June, but with UK inflation at 2.8% and crude oil climbing
Australian Dollar Holds Above the Current Market Profile
The minutes from the Reserve Bank of Australia's (RBA) June meeting, released on 30 June, suggested that policymakers are not yet ready to rule out further policy tightening. Board members noted persistent excess demand and broad-based inflationary pressures across the