#Gold Technical Analysis# On Monday (July 1), spot gold remained stable during the European market morning session, and the current gold price is around $2326 per ounce. Dhwani Mehta, a senior analyst at FXStreet, wrote a new article analyzing and predicting the technical trends of gold prices.
On this trading day, gold traders will focus on the US ISM manufacturing PMI data, which is expected to cause volatility in the gold market.
On Monday 22:00 Beijing time, the US June ISM manufacturing purchasing managers index (PMI) will be released, with an expected value of 49.0. In May, it was 48.7.
Analysts pointed out that if the US PMI is stronger than expected, the dollar is expected to strengthen, thereby suppressing the gold price; on the other hand, data that is weaker than expected will cause the dollar to fall, and push up the gold price.
On Tuesday, Federal Reserve Chairman Powell will speak at the central bank forum held by the European Central Bank, which will be the number one risk factor for gold prices at the beginning of the week.
From a technical perspective, Mehta pointed out that according to the daily chart of gold, as long as the 14-day relative strength index (RSI) remains below 50, the gold price still looks fragile, and breaking through the 21-day simple moving average (SMA) of $2328 per ounce is a tricky problem for buyers.
The daily closing price of gold is above the 21-day moving average, which is crucial for the recovery trend of gold prices from the monthly low point of $2287 per ounce.
Mehta said that if gold continues to rise, the 50-day moving average of $2338 per ounce will be challenged, followed by a two-week high of $2369 per ounce.
(Spot gold daily chart source: FXStreet)
On the other hand, Mehta added that if gold sellers regain confidence, the short-term support level of the gold price will be at $2300 per ounce. If it falls below this threshold, then the support level area of $2290 per ounce will come into play. Last week's low point and the June low point are hovering around this level.
After this, the last line of defense for gold buyers is at the May 3 low of $2277 per ounce.
At 15:43 Beijing time, spot gold reported $2325.94 per ounce.