3 August Gold Price Technical Forecast: Gold drops to 13-month lows


Gold reversed an early uptick to $1210 area and dropped to near 13-month lows in the last hour. What is next? Today’s 3 August Gold Price Technical Forecast will reveal.

3 August, GKFX – The US Dollar received a strong boost on Thursday and was seen as one of the key factors prompting some heavily selling around the dollar-denominated commodity. 

Adding to this, the August Fed monetary policy statement reaffirmed the gradual rate hike path and exerted some additional downward pressure on the non-yielding yellow metal. 

Gold Fundamental Highlights

A subdued USD price action provided a minor lift during the Asian session on Friday, albeit signs of stability in global financial markets did little to revive the safe-haven demand and kept a lid on any meaningful recovery. 

The precious metal touched an intraday low level of $1205, the lowest since July 2017, but the selling pressure now seems to have abated a bit as investors now seemed to have turned cautious ahead of the keenly watched US monthly jobs report

Today’s macro data will be looked upon to reaffirm expectations for a gradual pace of the Fed monetary policy tightening, which might eventually pave the way for an extension of the commodity’s ongoing bearish trajectory.

3 August Gold Price Technical Forecast

The $1200 handle is likely to act as an immediate support, which if broken is likely to accelerate the fall towards $1296 support area before the commodity drops to its next support near $1290 level.

On the flip side, $1210 area now seems to have emerged as an immediate hurdle, above which a bout of short-covering could lift the commodity towards $1216 intermediate hurdle en-route $1223-24 supply zone.

Disclaimer

This article 3 August 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.

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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