Gold fades bounce off 100-DMA inside $30 range
Gold prices remain pressured towards 100-DMA retests, reversing the previous day’s bounce, as the US dollar stays firmer and the market sentiment improves ahead of the key PMI data for July. Even so, the yellow metal stays inside the $1,795 to $1,825 trading range, comprising 100-DMA and 200-DMA in that order. It should be noted that the firmer PMIs are less welcomed as the virus resurgence pushes policymakers to keep the easy money flowing. The same could keep the range intact. However, stronger PMIs will back the Fed hawks ahead of next week's FOMC and drag the quote below $1,795, highlighting the importance of 61.8% Fibonacci retracement level and a four-month-old horizontal line, respectively around $1,767 and $1,756.
Should the gold buyers retake controls past PMI release, backed by market optimism, a confluence of 200-DMA and 38.2% Fibonacci retracement near $1,825 will be the key hurdle to cross. A daily closing beyond $1,825 will need only one validation from a monthly high of $1,834 before recalling the bulls targeting the early June lows near $1,855. Overall, gold prices remain lackluster and the monotony is likely to prevail for the rest of the week unless any big surprise shakes markets.
Should the gold buyers retake controls past PMI release, backed by market optimism, a confluence of 200-DMA and 38.2% Fibonacci retracement near $1,825 will be the key hurdle to cross. A daily closing beyond $1,825 will need only one validation from a monthly high of $1,834 before recalling the bulls targeting the early June lows near $1,855. Overall, gold prices remain lackluster and the monotony is likely to prevail for the rest of the week unless any big surprise shakes markets.