Gold fell from a high and may fall back to the range
During the U.S. trading session on Wednesday (July 23), spot gold fell from a high and is now trading around $3,390/ounce. Previously, gold prices broke through the $3,400 mark on Tuesday, reaching a high of $3,433.37/ounce during the session, a new high since June 16, and finally closed up 1% at $3,431.59/ounce.
The main factors driving the rise in gold prices include:
Weak U.S. dollar: The U.S. dollar index fell 0.3% to 97.545, a two-week low, providing support for gold.
Trade uncertainty: The market is closely watching the deadline for U.S. tariff negotiations on August 1, and the continued deadlock has increased risk aversion demand.
Lower U.S. Treasury yields: The downward trend in yields weakens the attractiveness of the U.S. dollar, and funds flow to gold.
However, if there is a breakthrough in trade negotiations or the Federal Reserve releases hawkish signals, market risk appetite may rebound and gold prices may face correction pressure. In the short term, gold prices are still dominated by fundamentals, but we need to be alert to the possibility of high-level shock adjustments.
Technical aspect: Overbought signals appear, pay attention to key support and resistance
Daily level:
Strong rise: three consecutive days of positive closing, breaking through the 3400 and 3420 trend line pressure, the Bollinger band opening widens, showing strong bullish momentum.
Overbought risk: RSI and MACD show a top divergence, technical correction needs are enhanced, but market sentiment still dominates the trend.
Key observation points: If it continues to close positive today, the upper target will look at 3450; if it closes negative, it may start a short-term adjustment and test the 3380-3370 support.
4-hour level:
Short-term peak signal: It hit 3438 in the early trading and then fell back. If it falls below the 3405-3400 support, it may further test 3385 or even 3375-3350.
Long-short watershed: If 3400 is held, high-level fluctuations will be maintained; if it is lost, the correction may continue.
Operation strategy: Be cautious about high-level fluctuations
Short-term resistance: 3400-3405 (if the rebound is under pressure, consider shorting)
Short-term support: 3380-3370 (if it stabilizes after a pullback, you can try long with a light position)
Summary: Although gold is still in a bullish trend, the technical overbought and fundamental uncertainty require vigilance against the risk of a high-level correction. It is recommended to rebound high and short as the main, and pull back low and long as the auxiliary, and pay close attention to the gains and losses of the 3400 mark and changes in market sentiment.
During the U.S. trading session on Wednesday (July 23), spot gold fell from a high and is now trading around $3,390/ounce. Previously, gold prices broke through the $3,400 mark on Tuesday, reaching a high of $3,433.37/ounce during the session, a new high since June 16, and finally closed up 1% at $3,431.59/ounce.
The main factors driving the rise in gold prices include:
Weak U.S. dollar: The U.S. dollar index fell 0.3% to 97.545, a two-week low, providing support for gold.
Trade uncertainty: The market is closely watching the deadline for U.S. tariff negotiations on August 1, and the continued deadlock has increased risk aversion demand.
Lower U.S. Treasury yields: The downward trend in yields weakens the attractiveness of the U.S. dollar, and funds flow to gold.
However, if there is a breakthrough in trade negotiations or the Federal Reserve releases hawkish signals, market risk appetite may rebound and gold prices may face correction pressure. In the short term, gold prices are still dominated by fundamentals, but we need to be alert to the possibility of high-level shock adjustments.
Technical aspect: Overbought signals appear, pay attention to key support and resistance
Daily level:
Strong rise: three consecutive days of positive closing, breaking through the 3400 and 3420 trend line pressure, the Bollinger band opening widens, showing strong bullish momentum.
Overbought risk: RSI and MACD show a top divergence, technical correction needs are enhanced, but market sentiment still dominates the trend.
Key observation points: If it continues to close positive today, the upper target will look at 3450; if it closes negative, it may start a short-term adjustment and test the 3380-3370 support.
4-hour level:
Short-term peak signal: It hit 3438 in the early trading and then fell back. If it falls below the 3405-3400 support, it may further test 3385 or even 3375-3350.
Long-short watershed: If 3400 is held, high-level fluctuations will be maintained; if it is lost, the correction may continue.
Operation strategy: Be cautious about high-level fluctuations
Short-term resistance: 3400-3405 (if the rebound is under pressure, consider shorting)
Short-term support: 3380-3370 (if it stabilizes after a pullback, you can try long with a light position)
Summary: Although gold is still in a bullish trend, the technical overbought and fundamental uncertainty require vigilance against the risk of a high-level correction. It is recommended to rebound high and short as the main, and pull back low and long as the auxiliary, and pay close attention to the gains and losses of the 3400 mark and changes in market sentiment.
Free Signals：t.me/+CXftl_-QHEo2Yzc0
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Free Signals：t.me/+CXftl_-QHEo2Yzc0
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.