#Gold Technical Analysis# On Tuesday (July 2), the spot gold market saw a short-term downturn, and the price of gold just fell below the $2330/ounce mark. FXStreet senior analyst Pablo Piovano's latest article analyzes the technical prospects of gold.
(Spot gold 5-minute chart Source: 24K99)
On this trading day, gold traders will focus on Fed Chairman Powell's speech and US JOLTS job vacancy data.
Piovano said that investors and gold will closely watch the European Central Bank Forum attended by Fed Chairman Powell in Sintra, Portugal on July 2.
At 21:30 Beijing time on Tuesday, Federal Reserve Chairman Powell will deliver a speech at the Central Bank Forum held by the European Central Bank.
At 22:00 on Tuesday Beijing time, the US May JOLTs job vacancy data will be released, with an expected value of 7.9 million and a previous value of 8.059 million.
The JOLTS job vacancy report is one of the labor force indicators that US Treasury Secretary Yellen values most when she served as the chair of the Fed. This indicator is also data that the Fed is highly concerned about in the labor market.
Short-term technical outlook for gold
Piovano said that the gold price is hovering near $2330/ounce, and the daily chart of gold shows that the consolidation phase is still continuing. So far, the price of gold should receive the first support at the June low point of $2287/ounce. Although the 55-day moving average is conducive to further narrow-range fluctuations, the 100-day moving average and 200-day moving average (located at $2258/ounce and $2123/ounce, respectively) suggest that the gold price may have further upward space. Similarly, the relative strength index (RSI) threshold above 50 supports the latter view to some extent.
Piovano added that from the 4-hour trend chart, the gold price is also in a wait-and-see state in the short term. However, the continuous upward trend of technical indicators seems to be conducive to some new buying interest. If the gold price breaks through the recent top near $2340/ounce, the gold price may challenge the key 200-period moving average near $2345/ounce.
(Spot gold 4-hour chart source: FXStreet)
Piovano also gives the latest key support and resistance levels of the gold price:
Resistance: $2327.60/ounce; $2337.00/ounce; $2345.20/ounce
Resistance levels: $2337.00/ounce, $2344.25/ounce, $2368.76/ounce
At 11:38 Hong Kong time, the spot gold price reported $2328.14/ounce.