Today’s Gold Analysis Overview:
- The overall of Gold Trend: Remains Bullish.
- Today's Gold Support Points: $4040, $3970, and $3880 per ounce.
- Today's Gold Resistance Points: $4160, $4220, and $4300 per ounce.
Today's Gold Trading Signals:
- Sell gold from the resistance level of $4220, with a target of $4070 and a stop loss of $4280.
- Buy gold from the support level of $3950, with a target of $4200 and a stop loss of $3900.
Technical Analysis of Gold Price (XAU/USD) Today:
During yesterday's trading session, gold sell-offs resumed, with losses of 0.49 percent. According to gold trading platforms, gold prices fell to the support level of $4,004 per ounce, the lowest level in 10 days. This continued Tuesday's sell-offs, during which the gold price index experienced its worst daily performance in five years. Prices then fell from the resistance level of $4,375 per ounce, near their all-time highs, with losses to the support level of $4,082 per ounce during the same trading session.
Based on the performance on the daily chart and following the recent gold selling, the 14-day Relative Strength Index (RSI) has moved away from the overbought line and is settling around a reading of 58, close to the neutral line. It may reach the neutral line if bears manage to push gold prices toward the support levels of $3950 and $3840, respectively. Currently, as I mentioned before and according to gold analysts' forecasts, the general outlook for the gold trading market will remain bullish as long as the price of the yellow metal holds around and above the psychological resistance of $4000 per ounce.
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Trading Tips:
Keep in mind that a strong decline in the price of gold is a good opportunity to consider buying again, but never take risks, no matter how strong the trading opportunity.
Will gold prices rise in the coming days?
According to the monitoring and expectations of gold analysts, the price of gold has risen by 60% this year, recently surpassing $4,300 for the first time. For investors seeking protection from economic uncertainty, including a weak labor market and the trade war between the United States and China, gold has seemed like an ideal safe haven.
However, its price is highly volatile. The price of gold fell by about 6% on Tuesday, its largest decline in more than a decade. Although the price of gold has been steadily rising over the long term, investors who invest all their money in gold at the wrong time could lose their money. What goes up often comes down. Gold critics use this fact to criticize proponents of a return to a gold-backed dollar. They argue that gold's volatility undermines the argument that pegging currencies to gold is a stabilizing force, and that returning to it would help calm inflation. Given that the price of gold fluctuates so widely, re-pegging the dollar to gold would be disastrous.
The US Dollar's purchasing power will remain in constant flux, making it impossible for households, businesses, and the government to make rational financial decisions. Overall, despite the significant market uncertainty, gold experts expect the gold price to stabilize between $4000 and $4500 per ounce in the near term.
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