On Tuesday, gold prices dipped as the dollar strengthened and some investors locked in profits ahead of the US Federal Reserve meeting next week. During the Asian session, gold prices dropped as traders focus on the decision from multiple central banks during the next two weeks.

The ECB is supposed to meet on Thursday, which is followed by the Bank of Japan and then the US Federal Reserve next week. Furthermore, markets broadly expect the Fed to cut rates by 25 basis points at its July 30-31 meeting.

During the previous week, gold prices temporarily exceeded $1,450 mark for the first time in more than six years last week after New York Fed President John Williams raised concerns of an aggressive rate cut. Nonetheless, the New York Fed announced that the speech was not about implied action at the forthcoming meeting.

XAU/USD – Technical Outlook

On the technical front, GOLD hasn’t made much progress from yesterday. Yellow metal gold has already completed 50% Fibonacci retracement at $1,426 and it may head towards the next support area of around $1,420. That can be a trading level where we may see bulls taking an entry.

Looking at the 4-hour chart, the 50 and 100 period moving averages are supporting the precious metal around $1,411. The RSI and Stochastic still hold in the buying zone, which is another signal demonstrating bullish bias among traders.

Support Resistance
1399.32 1452.21
1373.28 1479.06
1320.39 1531.95
Key Trading Level: 1426.17

Gold – XAU/USD – Trade Idea
Fellas, I will be looking to stay bearish below $1,426 and bullish above $1,418 to capture quick 30 pips on both sides.

Good luck!