Gold prices on Wednesday tumbled over five-month low amid weakening global trend and considerable fall in demand from jewelers. What’s next? ADS Securities shared their 18 July Gold Price Technical Analysis.
18 July, ADS Securities – Gold prices tumbled during the American session, hitting the lowest level in a year. The metal dropped below $1240 and accelerated the decline to reach the $1222 level, the lowest point since July 2017.
This free fall was caused by the surging Dollar that made an impressive comeback ahead of Powell’s testimony today which also will be responsible for the price action ahead.
18 July Gold Price Technical Analysis
Gold continued to fall breaking the $1238 major support level after momentum declined as shown by the RSI on the chart below.
Extreme oversold conditions are already there with a small divergence so we could see a continuation towards the 1217 level before any correction happens.
Support: 1217 1206
Resistance: 1226.50 1228.47
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