Gold extended overnight retracement slide from near two-week tops and maintained its offered tone through the mid-European session. What next should traders expect with short-term technical indicators already losing positive momentum? Find out in today’s 10 July Gold Price Technical Forecast.
10 July, GKFX – Resurgent US Dollar demand, with the bulls looking to break the recent bearish momentum, was seen as one of the key factors prompting some fresh selling around dollar-denominated commodities – like gold.
This coupled with improving investors’ appetite for riskier assets, as depicted by a positive trading sentiment around European equity markets, further weighed on the precious metal’s safe-haven appeal and collaborated to the downfall.
Positive US bond yields adds to the downward pressure
With today’s slide, the yellow metal has reversed all of its modest gains recorded since last Wednesday and the fact that it has weakened back below 100-hour SMA, for the first time in about a week, now seems to suggest that the recent corrective bounce might have already run out of steam.
Meanwhile, a goodish pick up in the US Treasury bond yields might further collaborate towards driving flows away from the non-yielding yellow metal. Hence, a follow-through selling, absent market moving economic releases, now looks a distinct possibility.
10 July Gold Price Technical Forecast
Gold 1-hourly chart
Spot Rate: $1256.73
Daily High: $1260.38
Daily Low: $1255.13
R1: $1259 (23.6% Fibo. retracement level)
R2: $1266 (overnight swing high)
R3: $1273 (an important support break-point)
S1: $1252 (50% Fibo. retracement level)
S2: $1248 (horizontal zone)
S3: $1242 (recent daily closing low)
This article 10 July Gold Price Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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