2 July Gold Price Fundamental Forecast: Gold in a minor correction


The precious metal has plenty scheduled this week as a potential catalyst. In the meantime, how is the yellow metal trading? Find out in the following 2 July Gold Price Fundamental Forecast.

2 July, GKFX – Gold is currently trading at $1,251.94/oz, with a high of $1,254.38/oz and a low of $1,250.94/oz, steady awaiting this week’s key scheduled developments from geopolitical risks to nonfarm payrolls. 

Gold in a minor correction

Last week, gold managed a small gain in the August futures, snapping a 4-session losing streak while spot climbed from $1,248.44 early NY low to $1255.58 the high for Friday.

This came about despite US government data that proved that the US economy’s inflation gauge is in line with the Fed’s target of 2% for May, the greenback was on the backfoot and Gold prices were able to snap a 4-session losing streak. 

US core inflation hit the Fed’s 2% target for the first time in six years. The PCE index as being the Federal Reserve’s preferred inflation gauge, climbed by 0.2%, with the rate of inflation over the past 12 months rising to 2.3% and at the fastest pace since March 2012 – (the core inflation rate hit 2% for the first time since April 2012).

The week ahead

Analysts at Westpac picked out the main key events to watch for:

“US Jun ISM national manufacturing survey (Mon), Aust May building approvals, RBA policy decision, NZ dairy auction (Tue), Aust May retail sales and international trade balance, US Independence Day holiday (Wed), US Jun ADP private payrolls, Jun ISM non-manufacturing survey, June FOMC meeting minutes (Thu), US Jun employment report, Canada Jun employment report, US tariffs on $34bn of Chinese imports take effect (Fri).”

2 July Gold Price Fundamental Forecast

The precious metal is looking to stabilise within the golden death cross technical scenario. The 50-D SMA moving average for gold prices, currently at $1,295, is falling below its longer-term 200-D SMA moving average at $1,303). 

On a continuation of the correction, resistances look to be $1,255/68, (10-D SMA is located at 1261 ) $1,276 (Jun. 20 high) ahead of $1289 (21-D SMA) and $1300 (psychological level). Support remains intact at $1250 guarding a path down to $1243 (Dec. 8 low).

Disclaimer

This article 2 July Gold Price Fundamental 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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