Gold one-month 25 delta risk reversals fell to -0.55 today – the lowest level since December 29, highlighting strong put demand ahead of Fed’s Powell’s testimony to congress. What should investors expect? Find out as the following 17 July Gold Price Technical Forecast comes handy.
17 July, GKFX – The September rate hike has been baked-in and the markets will likely start pricing-in a December rate hike if the Fed head downplays risks to economy from Trump’s trade war and expresses concerns over rising inflation.
17 July Gold Price Technical Forecast
In this case, USD could pick up a strong bid, pushing gold below the 50-month MA of $1,235. The yellow metal has already witnessed a long-run bearish revival last week. Further, strong demand for gold puts indicates the investors are likely expecting Powell to sound hawkish and hence are seeking downside protection (put options).
That said, signs of short-term bearish exhaustion around $1,238 seen on the hourly chart indicate scope for a minor corrective rally.
Current Price: $1,240
Daily High: $1,241.30
Daily Low: $1,237.67
Trend: Corrective rally likely, overall bearish
R1: $1,245 (8-day EMA)
R2: $1,261 (June 21 low)
R3: $1,265.90 (July 7 high)
S1: $1,234 (50-month MA)
S2: $1,205 (July 2017 low)
S3: 41,200 (psychological hurdle)
This article 17 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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