July 21, 2023
Spot gold may rise into a range of $1,992 to $2,009 per ounce, as it has recovered strongly from the Wednesday low of $1,934. US Treasury bond yields got smashed on dovish US Federal Reserve policy guidance.
A retracement analysis on the fall from $2,009 reveals that about 61.8% of the fall has been revered. Even though it is not clear that the uptrend from $1,809.27 has continued, the reversal does increase the chance of the metal to revisit the high of $2.009.59.
Support is at $1,963, a break below could trigger a drop into $1,952 - $1,934 range. On the daily chart, an evening star forming between March 17 and March 21 was counteracted by a piercing pattern between Tuesday and Wednesday.
It is difficult to choose and rely on these conflicting signals. A further development of the chart would clear the doubt. Readings on the hourly chart suggest an upside bias. Further up, bulls will need a clear break of the yearly high at $2,010 to extend the ongoing bullish momentum toward the $2,050 psychological barrier.
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