Gold Exposes to Risk of Further Losses, US Dollar Declines

Key Take-Aways

  • The price of gold is battling to rise above $1,740.
  • On the 4-hours chart, a significant negative trend line is developing with resistance close to $1,725.
  • GBP/USD and EUR/USD have begun an upward correction.
  • The price of crude oil tried to burst upward beyond the $102.50 barrier.

Price Technical Analysis of Gold

When compared to the US dollar, gold’s price began a significant drop from far above the $1,835 mark. Below the $1,780 and $1,760 support levels, the price fell.

The price of XAU/USD went below the $1,740 support, the 200 simple moving average (green, 4-hours), and the 100 simple moving average, according to the 4-hours chart (red, 4-hours).

It traded as low as $1,697 level before a slight pull back above the $1,700 mark. currently, it is accumulating losses close to the $1,710. The $1,725 mark serves as a temporary barrier. On the same chart, a significant negative trend line is also developing, with resistance located close to $1,725.

The price may increase in direction of the 100 simple moving average if it surpasses the next significant barrier near the $1,740 mark (red, 4-hours).

In the absence of an upward break, the price may continue to decline below $1,700. Near $1,685 is the next significant support, below which the price may continue to decline quickly. In the aforementioned scenario, the price might drop to around $1,650.

In terms of EUR/USD, the pair has begun to recover and has reached 1.0200.

The GBP/USD currency pair also advanced past the 1.2000 barrier level.

Economic Release to Trade Today

UK Consumer Price Index for June 2022 (YoY) is forecasted to increase by +9.3% compared to the previous +9.1%.

The UK Core Consumer Price Index for June 2022 (YoY), is forecasted at +5.8% from +5.9% previous.

Canadian Consumer Price Index for June 2022 (MoM): Forecasted to increase by +2.6% vs. +1.7% in the prior month.

Canadian Consumer Price Index for June 2022 (YoY): forecasted increase of +8.4% vs. +7.7% in the prior month.

Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.