Gold Under Downward Pressure as the US Dollar Remains Strong

Jul 1

📊 Market Overview:
Gold prices remain in a downtrend as they face dual pressure from a stronger US dollar and elevated US Treasury yields. Investors are cautiously awaiting key US economic data, including the ADP Employment Report and Non-Farm Payrolls (NFP). Expectations that the Fed may maintain a restrictive monetary policy, with a potential rate hike in September, are reducing the appeal of gold as a non-yielding asset.

📉 Technical Analysis:
• Key Resistance Levels:
Zone 1: 4,020 - 4,030 USD/oz
Zone 2: 4,060 - 4,070 USD/oz

• Nearest Support Levels:
Zone 1: 3,970 - 3,980 USD/oz (important psychological support)
Zone 2: 3,940 - 3,950 USD/oz

• EMA: Price is currently trading below the EMA 09 (around 3,996), confirming a short-term bearish trend.

• Candlestick / Volume / Momentum: RSI is at 36.6, indicating bearish momentum still dominates, though it is approaching oversold territory. A short-term technical rebound may occur before the primary trend resumes.

📌 Outlook:
Gold may continue to decline in the short term if the price closes below 3,980 USD. The trend will only shift bullish if buyers push the price above the 4,030 USD resistance zone with strong trading volume.

💡 Suggested Trading Strategy:

🔻 SELL XAU/USD: 4027 - 4030
🎯 TP: 40 / 80 / 200 / 300 pips
❌ SL: 4035

🔺 BUY XAU/USD: 3945 - 3942
🎯 TP: 40 / 80 / 200 / 300 pips
❌ SL: 3937

Jul 1

Trade active

Jul 1

Trade closed: target reached