GOLD attempts a dead cat bounce amid trade optimism
Gold price snaps a three-day downtrend and rebounds from weekly lows early Monday.
The US Dollar remains subdued as the Euro firms up on the US-EU trade deal; awaits US-China Stockholm talks.
Gold price settled the week below the key $3,342 support on Friday. The daily RSI is back under the 50 level.
Gold price has bounced off the key $3,310 support early Monday, after hitting a weekly low in the weekly opening hours. The focus now shifts to an action-packed US economic calendar amid looming US-China trade talks.
Gold price is snapping a three-day downtrend in Asian trading on Monday as traders resort to taking profits off the table after the bullion hit a fresh weekly low of $3,312 earlier on.Markets could be adjusting their positions on Gold price, bracing for a US data deluge this week that kicks off on Tuesday.
With the US Federal Reserve policy announcements and the second-quarter GDP report in the eye of the storm of a high-stakes docket, any recovery attempt in Gold price will likely remain short-lived.
In the meantime, traders eagerly await the US-China trade talks, with US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng scheduled to meet on Monday in Stockholm.Citing sources, the SCMP reported on Sunday, the US and China are expected to extend their tariff deadline by another 90 days.
The US trade deals optimism keeps the broader market sentiment underpinned while diminishing the appeal of safe-haven assets such as Gold price, the USD etc.
On Sunday, President Donald Trump announced that the United States and the European Union reached a framework for a trade deal, agreeing on a blanket 15% levy on the bloc.
Additionally, easing geopolitical tensions in the Asian sub-continent could also remain a headwind for the traditional store of value, Gold price.
Daily technical analysis
The daily chart shows that Gold price breached the critical rising trendline support at $3,342 on Friday and closed the week below that level.
Meanwhile, the 14-day RSI remains below the midline, currently near 49, indicating that any recovery could likely be short-lived.
Only a sustained move above the strong support-turned-resistance of $3,346 on a daily closing basis could negate the near-term bearish outlook.
That level is the confluence of the rising trendline resistance, 21-day SMA and the 50-day SMA.
The next topside hurdle is seen at the $3,380 static resistance en route to the $3,400 mark.
If the downside regains momentum, Gold price could revisit the crucial support of $3,310, below which the July 9 low of $3,283 will be tested.
The last line of defense for Gold buyers is placed at the June 30 low of $3,303.
GOLD attempts a dead cat bounce amid trade optimism
Gold price has bounced off the key $3,310 support early Monday, after hitting a weekly low in the weekly opening hours. The focus now shifts to an action-packed US economic calendar amid looming US-China trade talks.
Gold price is snapping a three-day downtrend in Asian trading on Monday as traders resort to taking profits off the table after the bullion hit a fresh weekly low of $3,312 earlier on.Markets could be adjusting their positions on Gold price, bracing for a US data deluge this week that kicks off on Tuesday.
With the US Federal Reserve policy announcements and the second-quarter GDP report in the eye of the storm of a high-stakes docket, any recovery attempt in Gold price will likely remain short-lived.
In the meantime, traders eagerly await the US-China trade talks, with US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng scheduled to meet on Monday in Stockholm.Citing sources, the SCMP reported on Sunday, the US and China are expected to extend their tariff deadline by another 90 days.
The US trade deals optimism keeps the broader market sentiment underpinned while diminishing the appeal of safe-haven assets such as Gold price, the USD etc.
On Sunday, President Donald Trump announced that the United States and the European Union reached a framework for a trade deal, agreeing on a blanket 15% levy on the bloc.
Additionally, easing geopolitical tensions in the Asian sub-continent could also remain a headwind for the traditional store of value, Gold price.
Daily technical analysis
The daily chart shows that Gold price breached the critical rising trendline support at $3,342 on Friday and closed the week below that level.
Meanwhile, the 14-day RSI remains below the midline, currently near 49, indicating that any recovery could likely be short-lived.
Only a sustained move above the strong support-turned-resistance of $3,346 on a daily closing basis could negate the near-term bearish outlook.
That level is the confluence of the rising trendline resistance, 21-day SMA and the 50-day SMA.
The next topside hurdle is seen at the $3,380 static resistance en route to the $3,400 mark.
If the downside regains momentum, Gold price could revisit the crucial support of $3,310, below which the July 9 low of $3,283 will be tested.
The last line of defense for Gold buyers is placed at the June 30 low of $3,303.
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