Today’s Gold Analysis Overview:
- Gold's General Trend: Tends to Form a Reverse Downward Channel
- Gold Support Points Today: $3,200, $3,145, and $3,090, respectively.
- Gold Resistance Points Today: $3,285, $3,340, and $3,400, respectively.
Today's gold trading signals update:
- Buy gold from the support level of $3,180, with a target of $3,285 and a stop loss of $3,155.
- Sell gold from the resistance level of $3,310, with a target of $3,100 and a stop loss of $3,380.
Technical Analysis of Gold Price (XAU/USD) Today:
Since the middle of this week's trading, Gold/USD (XAU/USD) has been in a downward correction path with losses extending to the support level of $3222 per ounce, the lowest for gold prices in two weeks, giving up the stable performance at the beginning of the week's trading around the resistance of $3353 per ounce. Its losses came amid easing trade tensions between the United States and its trading partners, which reduced the metal's safe-haven appeal. Overall, this performance may support the formation of a new bearish channel for the gold price index, which jumped to a historical record high last month when gold prices reached $3500 per ounce, the highest in the history of gold bullion prices. After the recent movements, the 14-day RSI moved near the midline, confirming the start of a break of the overall upward trend. At the same time, the blue line crossed below the yellow line in the MACD (12, 26) reading, confirming that bears are starting to move prices.
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Don't forget that the price of an ounce of gold has risen by more than 25% this year, as the trade war, expectations of a global economic slowdown, and tensions between the Trump administration and the US Federal Reserve have fuelled safe-haven demand. These gains have also been supported by inflows into bullion-backed exchange-traded funds, purchases by global central banks, and indications of strong speculative demand in China, even as actual consumption in the world's largest buyer has declined.
Trading Tips:
Dear TradersUp website follower, keep in mind that the recent selling of gold prices may be good opportunities to consider buying, but without risk and distributing entry trades across several levels.
Will gold prices fall to $3,000 per ounce?
Traders continue to study global economic forecasts amid increasing uncertainty about the effects of the accelerating trade war led by the United States, which has boosted demand for gold as a safe haven and led to record highs in recent months. According to licensed company platforms, the pace of gold selling has accelerated recently, as traders bet on indications that its massive rally may have gone too far too quickly. Accordingly, hedge fund managers have reduced their net long positions in US gold futures and options to their lowest level in 14 months, according to the latest data from the Commodity Futures Trading Commission. Therefore, a move in gold prices to the psychological level of $3000 per ounce, which may be opportunities for bargain hunters to buy again, cannot be ruled out.
Shifts in options positioning – which saw trading volumes in the SPDR Gold Shares ETF exceed a record 1.3 million contracts last week – may point to a frothy market in the short term, with prices outpacing fundamentals, according to Barclays. However, the yellow metal is still up about 25% this year, as Trump's aggressive trade policy and concerns about the global economy have spurred demand for safe-haven assets.
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