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.
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