Today’s Gold Analysis Overview:
- The overall Gold Trend: Remains bullish.
- Today's Gold Support Levels: $3325 – $3300 – $3260 per ounce.
- Today's Gold Resistance Levels: $3365 – $3390 – $3420 per ounce.
Today's Gold Trading Signals:
- Sell gold from the resistance level of $3377 with a target of $3290 and a stop loss of $3400.
- Buy gold from the support level of $3290 with a target of $3370 and a stop loss of $3250.
Technical Analysis of Gold Price (XAU/USD) Today:
Last Friday's close was significant for gold bulls, as they began to prepare for new upward breakthroughs at the start of the new trading week. The gold price indicator is around the $3355 per ounce resistance level, and it reached a high of $3368 per ounce last Friday. According to performance on gold trading platforms, the yellow metal succeeded in recovering its strength, surpassing a critical psychological level as the weekend approached. However, even as gold continues to find support as a geopolitical and economic safe haven, analysts are warning investors that its rise may be limited as the focus shifts to other commodities.
On the technical side, based on the performance on the daily chart and according to gold analysts' expectations, gold will remain on the upside as long as it remains stable around and above the $3,300 per ounce resistance level. Furthermore, interest in buying gold bullion has increased again after US President Donald Trump surprised investors with a new attack in his ongoing global trade war. The rebound gains have pushed the 14-day RSI to settle above the midline, giving it more time to achieve stronger gains before reaching a buying overhang. Obviously, this could happen if bulls succeed in breaking the psychological resistance at $3,400 per ounce. Currently, the MACD is beginning to turn higher again, awaiting further positive momentum.
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The gold market is not awaiting any significant or influential economic data releases today, and the focus will remain on investor sentiment regarding the market's reaction to Trump's tariffs, which will likely be approved or rescinded.
Trading Tips:
Traders should consider buying gold bullion on every price dip, but without taking on undue risk, regardless of how strong the entry levels are. You should also closely monitor the factors influencing the market that have been detailed in this analysis.
Will Gold Prices Rise in the Coming Days, and to Where?
According to gold trading experts, trade tensions will remain potential risk factors that could boost demand for gold as a safe haven. Last week, gold prices rose by about 0.5%. Gold trading was able to regain its footing after the US President surprised commodity markets with his announcement of a 50% tariff on copper imports. As a result, copper futures on the COMEX exchange saw their largest single-day rise in history last week, surging by about 13% after Trump's tariff announcement. US warehouses were flooded with an unprecedented amount of copper supply as companies rushed to build their inventories before the August 1 deadline.
However, analysts also point out that rising copper prices will increase inflationary pressures, which will increase economic uncertainty and renew fears of recession and inflation. Also, the analysts believe this environment will continue to support the gold market. However, they also warn that while the gold market has established a solid base, the growing momentum in copper and silver is expected to keep gold prices under control in the near term.
Meanwhile, some analysts believe that the shift towards broader commodities is a key factor limiting gold's performance. In addition to copper, gold faces continuous competition from silver, which has strongly surpassed $38 per ounce. Spot silver was last trading at $38.38 per ounce, up 3.88% on the day and 4% over the past week. Analysts indicate that silver has become an attractive and valuable investment in the precious metals market, catching up to gold and platinum.
In addition to the increased competition in the commodities market, a growing number of analysts are taking a neutral stance on gold, as economic data is expected to support the Federal Reserve's neutral monetary policy stance. Furthermore, one of the key economic data markets will be watching this week is the US Consumer Price Index for June. Finally, the Federal Reserve has made it clear that it is in no rush to raise US interest rates amid persistently high inflation risks.
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