Market Cap:
$216B
BTC Dominance:
65.79%
btc:
$7,903.18
eth:
$172.14
xrp:
$0.29
Advertise
Forex

Gold price forecast - XAUUSD spikes to $1430

Gold price forecast - XAUUSD spikes to $1430

July 25, 2019 | SQUARED DIRECT – Gold price was trading inside the prior day’s range yesterday, which suggests investor indecision and impending volatility. Traders are likely keeping their eyes on today’s European Central Bank monetary policy decisions, followed by a press conference with ECB President Mario Draghi. The ECB could cut rates by 10-basis points, but at the very least, the central bank will signal fresh stimulus for September.

A more dovish than expected announcement could drive gold prices lower and the U.S. Dollar higher. Moreover, on the economic calendar front, traders will most likely react to a few U.S. economic reports including Flash Manufacturing PMI, Flash Services PMI, and New Home Sales. Strong reports could put pressure on gold because this would raise uncertainty about the need for a Fed rate cut next week.

Gold price technical forecast

Gold price spiked early in the day to $1430 but ended Wednesday’s session at $1426, unable to break through the $1427 resistance level (R1). Price missed to decisively move beyond the previous day’s trading range in a lackluster session.

The short-term trend is still bullish, however, as we are still trading above the 20-period moving average. Buying might speed up should prices close above the nearby high at $1430 to target the $1441 key resistance level (R2).

Alternatively, should a fundamental catalyst drive down prices below the $1418 support level (S1) and 20-period MA, the short-term trend could turn bearish.

Support: 1418 / 1401
Resistance: 1427 / 1441

Chart (H4)

Disclaimer

Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves a high level of risk. Therefore, Forex and CFDs may not be suitable for all investors because it is possible to lose all invested capital. Only invest with money you can afford to lose. Before deciding to trade, you need to ensure that you understand the risks involved. Seek independent advice if necessary. Please refer to our Risk Disclaimer.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

Premium Brokers

Your capital is at risk.