The gold price consolidates its week-start losses as bulls return to the 100-SMA barrier during Tuesday’s Asian session after failing to cross it the previous two days. Nonetheless, the yellow metal is up roughly $1,725 as of press time.

The recent gains in gold could be attributed to a weaker US dollar, low Treasury yields, and worries of a US recession. The US Dollar Index (DXY) fell for the fourth day in a row, down 0.18 percent intraday at 106.30 as of press time. It’s worth mentioning that 10-year Treasury yields in the United States are down 3.5 basis points near 2.78 percent, erasing the previous day’s recovery to 2.81 percent.

Furthermore, the Chicago Fed National Activity Index for June and the Dallas Fed Manufacturing Index for July, which the US S&P Global PMIs preceded for July on Friday, heightened economic concerns about the US. Moody’s recently reduced GDP estimates for the Eurozone and the US did not strengthen the US dollar.

According to Bloomberg, the Chinese recession concerns, easing the global economic slowdown, also weigh on market mood and support the XAU/USD bounce, owing to the lower USD and the historic safe-haven position of GOLD.

Similarly, Walmart’s reduction of earnings estimates and concerns about future consumer spending are further drivers of the risk-off sentiment amid a lackluster day. Furthermore, the global rating agency Moody’s reduction of European and US growth expectations adds to the risk appetite.

Among these bets, the S&P 500 Futures fail to follow Wall Street, falling to 3,955, down 0.40 percent intraday. However, a light schedule in Europe may limit gold price movements. However, today’s US CB Consumer Confidence for July, which was previously 98.7, appears to be crucial for pair traders to keep an eye on. The Richmond Fed Manufacturing Index for July and the House Price Index data for May will also be noteworthy. Above all, the pre-Fed buzz and growth-related discussions will be important to monitor for clear instructions.

Gold Technical Outlook

The gold price continues to vary around the 1726.60 level, and the EMA5o positively supports the price, thereby defending the recently proposed bullish trend scenario, with stochastic beginning to overlap positively currently.

As a result, these variables boost the odds of resuming the bullish bias presently, with 1755.70 as the next positive goal, while reminding you that it is critical to maintain above 1726.60 and 1720.00 to continue the predicted advance. Today’s trading range is likely between 1715.00 support and 1750.00 resistance.

Today’s projected trend: bullish