#Gold Technical Analysis# 24K99 News On Tuesday (July 2nd), in early European trading, spot gold suddenly fell rapidly in the short term. The price of gold has just fallen below 2325 US dollars/ounce, falling by 8 dollars on the day. Economies.com, a well-known financial news website, wrote a new article on Tuesday analyzing the technical prospects of gold in the day.
(Spot gold 5-minute chart Source: 24K99)
According to Economies.com, as long as the gold price remains below 2340.10 US dollars/ounce, the outlook remains bearish.
The US dollar index continued to rise in the short term and is currently at 106.05. The strong dollar is not favorable for the trend of gold prices.
(US dollar index 5-minute chart source: 24K99)
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.
Analysts pointed out that if Powell makes hawkish remarks, the dollar is expected to continue to strengthen, thereby impacting the trend of gold prices.
At the post-meeting press conference in June, Fed Chairman Powell stated that although the inflation rate has fallen sharply from the high level, it is still too high. This year's inflation data has not yet made the Fed "more confident" in approaching the target of 2%, and the Fed still maintains its tight monetary policy stance.
Economies.com wrote in the article that as long as the gold price remains below 2340.10 US dollars/ounce, the bearish trend scenario remains valid. The stochastic indicator gradually loses positive momentum, which supports bearish expectations. Currently, waiting for the gold price to recover its bearish trend, with the next target at 2272.06 US dollars/ounce.
(Spot gold 4-hour chart Source: Economies.com)
Economies.com stated that on the other hand, we should point out that if the gold price breaks through 2340.10 US dollars/ounce and maintains above this level, this will push the gold price to turn bullish, and first rise to 2370.00 US dollars/ounce, with a higher bullish target at 2400.00 US dollars/ounce.
Economies.com expects that the trading of gold prices today will be between the support level of $2,310.00/ounce and the resistance level of $2,345.00/ounce.
Economies.com stated that today's expected trend for gold prices is bearish.
At 15:23 Beijing time, spot gold reported 2323.47 US dollars/ounce.