Lingrid | GOLD Weekly Price Action. What Can We Expect in July?

XAUUSD prices initially dipped but then rebounded, with attention focused on the 2,300 level. Short-term pullbacks are likely to attract buyers, potentially pushing prices to 2,400 or even 2,450. The month of June came to a close with a doji candle, which often signals uncertainty in the market. As we look at the larger picture, gold's price remains trapped within the range of the massive bearish candle that formed earlier in June. To establish a clear trend, I believe we need to see a break above or below the boundaries of this monthly candle. When we examine the daily chart, we can see that the price is being heavily squeezed, a condition that will eventually lead to a more impulsive movement.

Looking ahead to July, we can expect a significant move if the price breaks out of its current consolidation zone. If it rises above the 2,350 level, there is a high probability that it will retest the top of the range at around 2,400. Conversely, if it breaks below the support level, we can anticipate a more substantial decline, potentially all the way down to the 2,250 level.

Overall, I expect consolidation to continue with a slight bullish sentiment because central banks' efforts to hoard gold and recent geopolitical risks are supporting prices, while the low interest rate environment in the US also favors gold. With summer volatility typically lower, it's likely that gold will continue to consolidate.

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻

Kommentar:

Gold market appears to be forming an inverse head and shoulders pattern. With the recent break and close above the trendline that previously acted as both support and resistance, the market is now testing the 2330 level, which could potentially be broken. In my opinion, the ideal scenario would be a pullback to the broken trendline level, followed by the completion of the inverse head and shoulders pattern. I also think there's a possibility that the price may move sideways until tomorrow, given the high-impact news event scheduled for tomorrow. I'm expecting the price to retest the resistance zone at 2350-2352 . My goal is the resistance zone around 2350.

Kommentar:

Upon examining the gold chart, it's evident that the market is anticipating Fed Chair Powell's remarks. Given the current range-bound environment, we could potentially see a fake breakout either upwards or downwards, which could ultimately drive the price in a significant direction. On the daily timeframe, we're seeing three consecutive small candles that suggest indecision in the market. I believe the market may still push higher to complete the large triangle formation. Notably, the recent bounce off the bottom of the pattern has set us up for a retest of the top. My target is resistance zone at 2350