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Gold Steady Above $1700 - Quick Daily Outlook

Gold Steady Above $1700 – Quick Daily Outlook

Posted Tuesday, July 19, 2022 by
Skerdian Meta • 2 min read

During the Asian trading session, the gold price is unchanged, staying within a bullish correction of recent supplies. As a result, the US dollar has been under pressure to begin the week, providing bulls with a chance in gold.

The dollar has suffered a reversal in Federal Reserve confidence as markets reduce their pricing of a 100-basis-point interest rate hike in the July 26-27 meeting run-up. As a result, the US dollar slipped below 107 on Monday, according to the DXY index, which measures the US dollar against a basket of foreign currencies. Last week, it traded as high as 109.29, marking a new bull cycle high.

Various economic indicators have contributed to the hawkish leaning among Federal Reserve speakers in the run-up to this month’s meeting. For one thing, both headline and core US inflation surprised the upside in June, with annual inflation soaring to a new four-decade high of 9.1 percent, up from 8.6 percent in May.

This and other data have boosted global yields and pushed the greenback higher over the bull cycle.

XAU/USD

Chair Jerome Powell remarked at the press conference following the June Federal Open Market Committee meeting that the Fed would require “compelling evidence” that inflation is lowering before changing direction, which he characterized as “a string of declining monthly inflation readings.”

Since then, the Fed’s Raphael Bostic has stated that “everything is on the table,” while Mester has stated that there is no justification for a lesser raise. Mary Daly, CEO of San Francisco, stated that 75 basis points were her “most likely posture.”

Gold Technical Outlook

Gold price failed to break 1700.00, indicating the start of a bullish corrective on an intraday basis. The XAU/USD price has to clear the intraday bearish channel’s resistance around 1720.00 to ensure the continuation of the rise to positive goals that begin at 1735.25 and extend to 1760.00.

As a result, a bullish bias is predicted for today, supported by stochastic positivity. The caveat is that failure to exceed 1720.00 will press on the market to continue the major bearish wave. Today’s trading range is likely between 1700.00 support and 1735.00 resistance.

Today’s projected trend: bullish

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