Gold price at 1,902.25 fails to capitalize on the previous rebound and experiences new selling pressure on Friday.
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- Gold price fails to build on the overnight bounce and comes under fresh selling pressure on Friday.
The pair currently trades last at 1902.25.
The previous day high was 1913.17 while the previous day low was 1893.01. The daily 38.2% Fib levels comes at 1905.47, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1900.71, expected to provide support.
Gold price meets with a fresh supply on the last day of the week and extends its steady intraday descent through the early part of the European session. The XAU/USD currently trades around the $1,900 round-figure mark, down nearly 0.40% for the day, and remains well within the striking distance of its lowest level since mid-March touched on Thursday.
A more hawkish stance adopted by major central banks and the prospects for further rate increases continue to act as a headwind for the non-yielding Gold price. Apart from this, the emergence of fresh US Dollar buying turns out to be another factor driving flows away from the XAU/USD. In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, climbs to a fresh two-and-half-week high in the last hour and continues to draw support from expectations for further policy tightening by the Federal Reserve (Fed).
It is worth recalling that the US central bank had signalled that borrowing costs may still need to rise as much as 50 bps by the end of this year. Adding to this, the upbeat US macro data released on Thursday reaffirmed market bets for a 25 bps lift-off at the next FOMC policy meeting on July 25-26. Furthermore, Fed Chair Jerome Powell said earlier this week that he does not see inflation coming down to the Fed’s 2% target until 2025. This, in turn, continues to push the US Treasury bond yields higher and lends support to the USD.
It, however, remains to be seen if the USD bulls can maintain their dominant position or opt to take some profits off the table ahead of the release of the US Core PCE Price Index – the Fed’s preferred inflation gauge. The crucial data is due later during the early North American session and influence expectations about the future rate-hike path. This, in turn, will drive the USD demand and provide a fresh directional impetus to Gold price, which seems poised to end the quarter in the negative territory for the first time since September 2022.
Technical Levels: Supports and Resistances
XAUUSD currently trading at 1902.33 at the time of writing. Pair opened at 1908.2 and is trading with a change of -0.31 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1902.33 |
| 1 | Today Daily Change | -5.87 |
| 2 | Today Daily Change % | -0.31 |
| 3 | Today daily open | 1908.20 |
The pair is trading below its 20 Daily moving average @ 1940.32, below its 50 Daily moving average @ 1970.36 , below its 100 Daily moving average @ 1943.91 and above its 200 Daily moving average @ 1858.19
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1940.32 |
| 1 | Daily SMA50 | 1970.36 |
| 2 | Daily SMA100 | 1943.91 |
| 3 | Daily SMA200 | 1858.19 |
The previous day high was 1913.17 while the previous day low was 1893.01. The daily 38.2% Fib levels comes at 1905.47, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1900.71, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1896.42, 1884.63, 1876.26
- Pivot resistance is noted at 1916.58, 1924.95, 1936.74
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1913.17 |
| Previous Daily Low | 1893.01 |
| Previous Weekly High | 1958.85 |
| Previous Weekly Low | 1910.18 |
| Previous Monthly High | 2079.76 |
| Previous Monthly Low | 1932.12 |
| Daily Fibonacci 38.2% | 1905.47 |
| Daily Fibonacci 61.8% | 1900.71 |
| Daily Pivot Point S1 | 1896.42 |
| Daily Pivot Point S2 | 1884.63 |
| Daily Pivot Point S3 | 1876.26 |
| Daily Pivot Point R1 | 1916.58 |
| Daily Pivot Point R2 | 1924.95 |
| Daily Pivot Point R3 | 1936.74 |
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