Gold prices saw a positive trend on Monday, continuing its recovery for the third consecutive day after a sharp decline last week. This increase was driven by speculation that the Federal Reserve might consider a 50 basis points rate hike in September.
The recent weak US economic data have raised concerns about a potential recession, causing panic in the market. Despite the current calmer situation, investors remain cautious as they await the release of the US inflation report for July. This report is expected to provide more insights into the Fed’s future monetary policy decisions.
In addition to these factors, geopolitical tensions have also supported the price of gold, contributing to an overall positive outlook for the precious metal. Technical analysis shows a bullish setup on the daily chart, with Monday’s upward momentum breaking above the Fibo 61.8% level of $2483/$2353 ($2433). A close above this level would further strengthen the bullish signals.
However, market movements are likely to slow down as traders anticipate the US CPI data release. The next price targets for gold are set at $2452 (Fibo 76.4%), $2477 (August 2 spike high), and the new all-time high at $2483. The rising 10DMA at $2422 and the broken Fibo 50% level serve as solid support levels, helping to maintain the bullish market structure.
Key resistance levels to watch include $2452, $2462, $2477, and $2483, while important support levels include $2433, $2422, $2418, and $2403. It is important to note that the information provided in this article is based on sources believed to be reliable, but the accuracy and completeness of the data cannot be guaranteed. Any opinions expressed are subject to change without notice, and no liability is accepted for any losses incurred from the use of this information.
