Gold Finished July Higher
Dmitriy Gurkovskiy | Aug 02, 2021 12:40
For gold, July was a more or less good month. By the end of the month, the asset had grown by 2.6%. However, at the present moment gold is declining.
On the one hand, gold is globally supported by the belief that the Fed will not rush at finishing stimulation in the nearest future. This depresses the dollar and supports gold prices. Moreover, with new types of the coronavirus making the global situation worse, safe-haven assets, including gold, are growing more popular.
A global problem might be the soft position of the Fed that becomes harder and harder to explain. Inflation in the USA is at its 13-years high, the economy is restoring pretty well, and this gives reasons for supporters of a harder position to be more active. This might hinder long-term growth of gold prices.
On H4, the XAU/USD pair is correcting the previous wave of growth, aiming at 1836.66. In this wave, the market has already reached the local goal of 1833.75 and a link of decline to 1790.00. Practically, the market formed a consolidation range around 1790.00. Today another structure of decline to 1790.00, followed by a link of growth to 1790.00. Then we should expect a link of growth to 1836.66 and a decline to 1755.55.
Technically, such a scenario is confirmed by the MACD. Its signal line has escaped the histogram area and is aiming at zero.
On H1, XAU/USD quotations have completed a wave of decline to 1812.40. At the moment, the market is forming a consolidation range around this level. With an escape downwards, the wave might continue to 1793.65. With an escape upwards, the price might grow to 1833.66.
Technically, this scenario is confirmed by the Stochastic oscillator. Its signal line is trading under 50. We should expect a decline to 20. Then growth might continue to 50, and if this level is broken away, growth might continue to 80.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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