The price of gold, denoted by #XAUUSD, has risen from its lowest point in five months at a value of 1,893.62. However, there is a lack of sustained momentum in its recovery. According to the opinion of nehcap, only a limited rebound is anticipated in the near future.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• Gold Price recovers from the lowest level in five months but lack follow-through.

The pair currently trades last at 1893.62.

The previous day high was 1911.77 while the previous day low was 1896.49. The daily 38.2% Fib levels comes at 1902.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1905.93, expected to provide resistance.

Gold Price (XAU/USD) prods a three-day losing streak while posting a corrective bounce from the lowest level since mid-March. In doing so, the XAU/USD cheers the latest inaction of the US Treasury bond yields, as well as the US Dollar, to recover from $1,891 to $1,894 amid the early hours of Thursday’s Asian session. That said, the Federal Reserve (Fed) Minutes underpinned a run-up in the Greenback that drowned the bullion prices to the multi-day low a few hours back. It’s worth noting, however, that the technical and fundamentals both flag doubts about the latest Gold Price recovery amid a lack of major supportive catalysts, except for the recently lackluster US Treasury bond yields.

Gold Price prints the first daily gains, so far, in four as it bounces off the five-month low. It’s worth noting that the XAU/USD’s latest corrective bounce could best be considered a consolidation amid an absence of major data/events that could have supported the move. On the contrary, many negatives from the US Federal Reserve, United States data and China prod the Gold buyers, not to forget the fears of the slowing growth in top-tier economies.

Among the key negatives, the Monetary Policy Meeting Minutes of the Federal Open Market Committee’s (FOMC) July 25-26 meeting recently drowned the Gold Price by highlighting the discussion on the inflation pressure, despite marking a division on the rate hike. That said, the Minutes also conveyed that most policymakers preferred supporting the battle again the ‘sticky’ inflation.

Elsewhere, mostly firmer United States data also underpinned the XAU/USD’s fall to the previous day. That said, the US Industrial Production marked a surprise 1.0% growth for July versus 0.3% expected and -0.8% prior while the Capacity Utilization for the said month also improved to 79.3% from 78.6%, compared to market forecasts of 79.1%. Further, the Building Permits edged higher to 1.442M for July from 1.441M whereas the Housing Starts rose to 1.452M for the said month versus 1.398M prior and 1.448M expected. It’s worth noting that both the Building Permits Change and Housing Starts Change improved more than market forecasts and previous readings. Previously, the US Retail Sales grew 0.7% MoM in July versus 0.4% expected and 0.3% reported in June (revised from 0.2%) and suggested strong consumer spending, mainly due to improved wages, which in turn favored the US Dollar to stay firmer amid early weekdays.

Furthermore, the growing fears from China, one of the biggest Gold customers, join the chatters about the softer growth in developed economies, backed by the global rating agency Fitch Ratings, weigh on the sentiment. The same defends the US Dollar bulls and challenges the XAU/USD rebound.

It’s worth noting that the recent downbeat closing of Wall Street and the firmer US Treasury bond yields, despite the latest retreat from the yearly high by the 10-year benchmark, question the Gold buyers.

Given the light calendar ahead, Gold traders should pay attention to headlines surrounding China’s economic growth, as well as the Fed talks, for clear directions. Also important will be the US weekly jobless claims and Philadelphia Fed Manufacturing Survey for August.

Also read: Gold Price Forecast: XAU/USD pierces $1,900 ahead of FOMC Minutes

Gold Price stays on the bear’s radar despite the latest corrective bounce from the bottom line of a three-week-long descending trend channel.

It’s worth noting that the nearly oversold conditions of the Relative Strength Index (RSI) line, placed at 14, underpins the XAU/USD’s bottom-picking as the Moving Average Convergence and Divergence (MACD) indicator signals the trader’s indecision.

With this, a slight recovery in the Gold Price toward a downward-sloping resistance line from July 31, close to $1,906, can’t be ruled out. However, the XAU/USD buyers remain off the table unless witnessing a clear upside break of the stated channel’s top line, close to $1,930 by the press time.

Even so, the 200-SMA hurdle surrounding $1,942 acts as the final defense of the Gold bears.

Meanwhile, a horizontal area comprising the lows marked since late June near the $1,896-93 zone, as well as the stated channel’s bottom line near $1,890, puts a floor under the Gold Price.

In a case where the XAU/USD remains bearish past $1,890, the odds of witnessing a slump toward an early March swing high of around $1,858 can’t be ruled out.

Trend: Limited recovery expected

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1894.44 at the time of writing. Pair opened at 1901.84 and is trading with a change of -0.39% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1941.87, 50 SMA 1939.06, 100 SMA @ 1965.14 and 200 SMA @ 1904.22.

The previous day high was 1911.77 while the previous day low was 1896.49. The daily 38.2% Fib levels comes at 1902.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1905.93, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1894.96, 1888.09, 1879.68
• Pivot resistance is noted at 1910.24, 1918.65, 1925.52

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...