Gold Crosses Over $1,770 Mark – Is It Heading North to $1,790?

The gold price dropped to around $1,774.65 after reaching a high of $1,780.58 in the early Tokyo session. As an upside break of consolidation is followed by a low-volume test of the breakout, the precious metal GOLD is expected to rebound once more. Previously, the yellow metal showed an upward break of the consolidation formed in the $1,764.45-1,775.35 region.

However, the US dollar index (DXY) has recovered slightly after hitting a three-week low of 105.05 at the open. The DXY is on a downward trend as retailers and producers reduce their forward demand significantly. On Monday, the US agency announced a weak US Institute of Supply Management (ISM) Manufacturing New Orders Index.

The economic data reveals that retailers and producers are anticipating future demand. At 48, the data remained lower than the forecast of 52 and the previous print of 49.2. A significant reduction in the demand forecast indication led to a sharp drop in the DXY.

Going forward, investors’ primary emphasis will be on the US Nonfarm Payrolls (NFP) due on Friday. According to market opinion, the US economy added 250k jobs in July, down from 372k in June. This will boost gold’s value against the US dollar.

Gold Technical Outlook

Gold price is currently testing critical resistance 1767.70, which represents one of the next trend keys besides 1755.70 support. As we indicated this morning, the price needs to clear one of these levels to determine its future destination clearly, which keeps us neutral for the time being.

Please see our morning report for a recap of the projected aims after the beach. Today’s trading range is likely between 1740.00 support and 1780.00 resistance.

Today’s predicted trend: Neutral

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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