Gold Prices Retreat Due to Bulls Taking Profits

Peterson

Summary:

The oscillation range during the day will be 2442-2485, and investors are advised to buy low and sell high.

SELL XAUUSD

Close Time

CLOSED

2475.00

Entry Price

2442.00

2485.00

4053.34 +3.82 +0.09%

330.0

Pips

Profit

2442.00

2441.86

Exit Price

2475.00

Entry Price

2485.00

Fundamentals

During the Asian session on Thursday (July 18), spot gold fluctuated, and it is currently trading around 2471.

Yesterday, New York Fed President Williams said that inflation data was encouraging in recent months, but he hopes to see more economic evidence in the coming months that suggests inflation will smoothly fall to 2% to gain the confidence needed to lower borrowing costs. However, the FedWatch tool showed that the probability of a rate cut in September slipped slightly to 98%. At the same time, gold prices slipped lower after hitting a record high yesterday, and silver prices plummeted as well. At the moment, the rise in gold prices is not sustainable. In the short term, the price may fluctuate at a high level and run weakly until the Fed meeting at the end of July.

Technical Analysis

The daily chart has closed with a small bear candle at a high level, and the candlestick has closed below the upper Bollinger band. It is not yet certain whether this is a top pattern or not, as the moving average support has not yet been broken. Support below is at 2442 and 2412. When the price falls below 2442, it can be determined that the gold price has peaked in this rally. When the price falls below 2412, it signals that gold is starting to turn bearish. But what trend will be remains to be seen. In the daily chart, the resistance is near 2475. Wednesday saw a bearish Doji Star at a high level, so traders can be bearish for gold on Thursday and look for a break below the support level.

Gold Prices Retreat Due to Bulls Taking Profits_1

Trading Recommendations

Trading Direction: Sell

Entry Price: 2475

Target Price: 2442

Stop Loss: 2485

Support: 2442.000/2412.000

Resistance: 2485.000/2500.000

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