GOLD recovers, but technical conditions lean bearish OANDA:XAUUSD recovering to above the price of 2,300 USD as of the time this article was being completed. The previous trading day, gold prices reached their largest decline in 3 and a half years due to data released by China and the United States.
Gold prices fell about $83, or 3.5%, last Friday, the biggest one-day drop since November 2020, after a stronger-than-expected US jobs report dampened hopes for a interest rate cut in September, while news that China's central bank is delaying gold purchases caused the market to reduce bets on demand from China, one of the world's biggest gold buyers. .
Market focus has shifted to the US consumer inflation report, released on Wednesday, the same day as the Federal Reserve's policy decision.
The Fed is not expected to make any changes this week, focusing on comments from Fed Chairman Jerome Powell and changes to policymakers' economic forecasts.
On the daily chart, gold is trying to recover above the $2,300 base price and a daily close above this base price would be a positive signal. To confirm, gold should maintain price activity above $2,305, a technical level noted by readers in Sunday's weekly edition.
On the other hand, if gold moves below the original price level of 2,300 USD again, it will continue to be under technical pressure with the target level possibly aiming at the price point of 2,272 USD, the location of the 0.382% Fibonacci retracement.
Holding above $2,305 would strengthen the case for a recovery with a target then around $2,324, a position that was also brought to the attention of readers in the weekly publication.
During the day, the technical trend is still leaning more towards bearish possibilities, positions will be noticed again as follows.
Support: 2,300 – 2,286 – 2,272USD
Resistance: 2,314 – 2,324USD
🪙SELL XAUUSD | 2341 - 2339
⚰️SL: 2345
⬆️TP1: 2334
⬆️TP2: 2329
🪙BUY XAUUSD | 2267 - 2269
⚰️SL: 2263
⬆️TP1: 2274
⬆️TP2: 2279