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SpanishA Short Term Outlook: XAU/USD (Gold); July 12, 2022
A Short Term Outlook: XAU/USD (Gold)
Today U.S. calendar will remain empty but gold needs key supportive fundamentals to move ahead. DXY too erases previous gain and spikes down below 108.00 mark but failed to find support below 108.00 levels.
In a latest analysis report by Kieran Tompkins, commodities economist at Capital Economics, gold prices ending the year 4% lower from current prices with a year-end target of $1,650 an ounce. The comments come as gold prices continue to test long – term support around $1,720 mark.
On the other side, rising inflation has taken place as fear in investor’s mind as major Central Banks have started acting wisely to bring the inflation in desire range. Along with inflation, rising real yields expect a strong U.S. dollar to remain a headwind for gold.
Let’s wait for the U.S. Inflation data due tomorrow to decide the further movement of the gold.
Technical View:
XAU/USD:
- Gold exhibits range bound movement and remains well supported between $1,720 to $1,740 mark.
- The pair made intraday high at $1,744 and Low at $1,723 mark.
- A day chart and H1 chart with triple EMA suggest bearish trend for the time being.
- A sustained close above $1,738 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,726 on H1 chart will test further supports.
| SUPPORTS | RESISTANCES |
| $1,721 | $1,738 |
| $1,715 | $1,742 |
| $1,708 | $1,748 |
| $1,702 | $1,754 |
| $1,696 | $1,760 |
Take a look and do trade wisely!
Good Luck
