Gold struggled to register any meaningful recovery and remains within striking distance of over 17-month lows, set last Friday. hat can traders expect from a technical perspective? Gain insight into this 7 August Gold Price Technical Forecast.
7 August, GKFX – Spot prices edged higher on Tuesday and recovered a part of previous session’s downfall, albeit a combination of diverging forces did little to provide any additional boost and kept a lid on any strong follow-through positive momentum.
Gold Fundamental Highlights
A modest US Dollar retracement helped revive demand for the dollar-denominated commodity. The positive factor was largely negated by fading safe-haven demand amid the prevalent positive trading sentiment around equity markets.
This coupled with firming expectations for gradual Fed rate hike path, reinforced by a goodish pickup in the US Treasury bond yields, further collaborated towards capping gains for the non-yielding yellow metal.
Looking at the broader picture, the commodity has been oscillating within a broader trading range over the past four trading sessions. Hence, it would be prudent to wait for a sustained break in either direction before traders start positioning for the near-term trajectory.
7 August Gold Price Technical Forecast
From a technical perspective, the commodity has been facing difficulty in moving back above 100-hour SMA and the inability to register a notable recovery clearly seems to suggest that the near-term selling bias might still be far from over.
Hence, immediate up-move is likely to face stiff resistance near the $1222-23 region and any subsequent recovery attempts might get sold into near the $1231-33 supply zone.
On the flip side, a decisive break below the $1206-05 region would mark a fresh bearish breakdown and accelerate the fall towards the $1200 psychological round figure mark before the commodity eventually drops to March 2017 low, around the $1194-93 region.
This article 7 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.
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