10 July Gold Price Technical Forecast: Gold drops to fresh session lows


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

Trend: Bearish

Resistance

R1: $1259 (23.6% Fibo. retracement level)

R2: $1266 (overnight swing high)

R3: $1273 (an important support break-point)

Support

S1: $1252 (50% Fibo. retracement level)

S2: $1248 (horizontal zone)

S3: $1242 (recent daily closing low)

Disclaimer

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.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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