Gold Price (XAU/USD) Strengthens as Risk-On Sentiment Returns

The Gold Price (XAU/USD) is benefiting from an improved risk-on mood as traders reassess previous concerns related to China.

Arslan Butt•Tuesday, July 18, 2023•1 min read

The GOLD Price (XAU/USD) is benefiting from an improved risk-on mood as traders reassess previous concerns related to China. The US Dollar’s inability to sustain its recovery from late Friday, coupled with underwhelming data, has added to the strength of Gold buyers. As a result, they are now poised for another battle to reclaim the significant $2,000 level.

Positive catalysts, such as China’s demonstrated ability to defend economic growth and signs of a thaw in US-China relations, are contributing to cautious optimism in the market. The US NY Empire State Manufacturing Index failed to impress Dollar bulls, despite positive consumer-focused figures on Friday.

Furthermore, expectations of additional stimulus from China and challenges faced by restrictive monetary policies are providing support for the GOLD Price.

Looking ahead, the market will closely watch US Retail Sales and Industrial Production data for June, as these will be crucial in determining the trajectory of the Federal Reserve’s rate hikes beyond July and could impact Gold Price movements.

Key Levels to Monitor for Gold Price:

In terms of technical analysis, the GOLD Price has recently surpassed significant resistance levels and now faces relatively smoother hurdles to the upside.

Immediate resistance is expected near $1,965, marked by the convergence of the previous weekly high and the upper Bollinger Band on the four-hour chart.

Beyond that, the Pivot Point one-month R1 level around $1,975 could provide further resistance, followed by the $1,985 resistance confluence, which encompasses the previous monthly high.

On the downside, the immediate support level for the GOLD Price is around $1,951, corresponding to the 50-day moving average (DMA).

Close by, near $1,950, there is a convergence of the Fibonacci 61.8% on the monthly chart and the 23.6% on the daily chart.

It is important to note that the Fibonacci 38.2% on the weekly chart, around $1,945, acts as the final defense for Gold bulls (XAU/USD).

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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Gold Price (XAU/USD) Strengthens as Risk-On Sentiment Returns

The Gold Price (XAU/USD) is benefiting from an improved risk-on mood as traders reassess previous concerns related to China.

Key Levels to Monitor for Gold Price:

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Gold Price (XAU/USD) Strengthens as Risk-On Sentiment Returns

The Gold Price (XAU/USD) is benefiting from an improved risk-on mood as traders reassess previous concerns related to China.

Key Levels to Monitor for Gold Price:

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Sidebar rates

HFM

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