#Gold Technical Analysis# 24K99 Report on Tuesday (July 23), in early European trading, spot gold suddenly rebounded strongly in the short term, and the current gold price has risen to $2398/ounce, rebounding $10 from the intra-day low touched earlier. Dhwani Mehta, senior analyst at FXStreet, published a latest article on Tuesday, analyzing gold price trends.

(Spot gold 15-minute chart source: 24K99

Mehta pointed out that from the daily chart of gold, the technical side continues to favor gold buyers, but whether it can break through $2425/oz is crucial.

From a broader perspective, the gold price is still supported by the Fed's interest rate cut expectations, and the possibility of a rate cut in September is almost a foregone conclusion.

According to the CME Group's "Fed Watch Tool", the probability of a Fed rate cut in September is 97%.

How will the price of gold trade next?

Mehta said that as long as the 14-day relative strength index (RSI) remains above 50, the gold price will be supported. The index is currently at 53.50.

The bullish cross formed by the 21-day simple moving average (SMA) and the 50-day SMA is also playing a role, proving the constructive prospect of the gold price.

Mehta pointed out that if the gold price rebounds and accumulates strength, it will test the static resistance level of $2425/oz. The next obstacle is at the previous historical high of $2450/oz. If it breaks through this level, buyers will aim at the historical new high of $2484/oz touched last week.

(Spot gold daily chart source: FX168)

Mehta added that on the other hand, if sellers return, the gold price may test the entry level of the 21-day moving average of $2379/oz, and then further decline to the support level of the 50-day moving average of $2361/oz.

The last line of defense for gold bulls is expected to be at the psychological level of $2350/oz.

At 15:49 Beijing time, spot gold was reported at $2398.21/oz.