Gold struggled to build on overnight modest recovery attempt from one-year lows and came under some renewed selling pressure on Thursday. What is next? The following 19 July Gold Price Technical Analysis reveals.
19 July, GKFX – Investors looked past yesterday’s disappointing US housing market data and the US Dollar caught some fresh bids, which was now seen as one of the key factors prompting some fresh selling around dollar-denominated commodities – like gold.
Gold Fundamental Highlights
Meanwhile, upbeat economy outlooks from the Fed Chair Jerome Powell and the central bank’s Beige Book report further reinforced expectations about gradual Fed monetary policy tightening cycle. The same was evident from a goodish pickup in the US Treasury bond yields and further collaborated towards driving flows away from the non-yielding yellow metal.
With growing trade war concerns failing to revive demand for traditional safe-haven assets, stability in global financial markets exerted some additional downward pressure and did little to assist the precious metal to register any meaningful recovery.
Today’s US economic docket, featuring the release of Philly Fed Manufacturing Index and the usual initial weekly jobless claims data, might provide some short-term trading impetus ahead of a scheduled speech by the Fed Governor Randal Quarles.
19 July Gold Price Technical Analysis
A follow-through weakness below overnight swing low level of $1221 is likely to accelerate the fall towards $1214 horizontal zone before the commodity eventually drops to test July 2017 swing lows support near the $1205 region.
On the flip side, the $1228-29 area now seems to have emerged as an immediate resistance, which if cleared might trigger a short-covering bounce back towards previous YTD lows, around the $1237-38 region.
This article 19 July Gold Price Technical Analysis 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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