16 July Gold Price Technical Forecast: Gold clings to modest recovery gains


Gold gained some positive traction at the start of a new trading week and recovered a part of Friday’s downslide to fresh YTD lows. What is next for the yellow metal? Peer into today’s 16 July Gold Price Technical Forecast for an idea.

16 July, GKFX – A combination of supporting factors eased the bearish pressure and helped the precious metal to stall its recent decline just ahead of the 200-week SMA support. 

A softer US Dollar, which retreated farther from two-week tops set on Friday, was seen underpinning demand for dollar-denominated commodities – like gold. 

This coupled with a cautious sentiment around equity markets extended some additional support to the precious metal’s safe-haven appeal and further collaborated to a modest rebound.

Fed rate hike prospects

Meanwhile, firming gradual Fed rate hike prospects, evident from a goodish pickup in the US Treasury bond yields capped any strong follow-through up-move for the non-yielding yellow metal.

The Fed Chair Jerome Powell’s testimony on the Semiannual Monetary Policy Report, scheduled on Tuesday and Wednesday, might offer fresh clues over the central bank’s near-term monetary policy outlook and eventually provide some fresh directional impetus. 

In the meantime, traders will look forward to the release of US monthly retail sales data, a key highlight from today’s economic docket, in order to grab some short-term opportunities. 

16 July Gold Price Technical Forecast

A follow-through up-move beyond $1247 area is likely to lift the commodity back towards $1252-53 supply zone en-route the next major hurdle near the $1258 region.

On the flip side, $1240 level might protect the immediate downside, which if broken might drag the metal further towards 200-week SMA support near the $1234 region.

Disclaimer

This article 16 July Gold Price Technical Forecast was provided by 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.

    Share Your Opinion, Write a Comment