Price of Gold Declines As US Dollar Keeps Gaining
Below the $1,750 area of support, the price of gold began a sharp drop.
On the 4-hours chart, resistance is located near $1,712, and it is following a significant bearish trend line.
Trades for the USD/GBP, USD/AUD, and USD/NZD reached fresh multi-week lows.
Above 139.40, USD/JPY surged to a new multi-year high.
Technical Analysis of Gold
The price of gold versus the US Dollar has had difficulty accelerating above the $1,800 barrier level. Below the support levels of $1,780 and $1,750, the price began a sharp drop.
The price of XAU/USD sank below the crucial $1,750 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the 4-hours chart.
More losses below the $1,720 support are now possible as a result of it. Even yet, the price fluctuated not far from the $1,700 support area. On the same chart, it appears to be following a significant negative trend line with resistance close to $1,712.
On the downside, a preliminary support is located close to the $1,700 mark. 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 $1,660.
On the upside, buyers may come into play close to the $1,710 mark. Near the $1,720 mark, there is the next significant barrier. Any more rises might drive the price towards the $1,732 mark.
Regarding GBP/USD, there were more losses, as the pair traded below 1.1600 to a new multi-month low.
Economic News To Trade Today
Forecasted Manufacturing PMI for August 2022 in Germany is 49.8, up from 49.8 in the previous month.
Forecasted Euro Zone Manufacturing PMI for August 2022 is 49.7, up from the previous reading of 49.7.
Forecasted UK Manufacturing PMI for August 2022 is 46.0, up from 46.0 in the previous month.
Forecast 51.3 for the US Manufacturing PMI in August 2022, up from the previous 51.3.
Forecast 52.0 for the US ISM Manufacturing Index for August 2022, down from the previous 52.8. US Initial Jobless Claims: 248K expected, up from 243K i
Author: Amogo Solomon
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