FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
FxPro information and reviews
HFM information and reviews

XAU/USD treads water near $1,800, bearish bias stays intact

27 July 2021

The XAU/USD pair closed the first day of the week in the negative territory. Although the US Dollar Index edged lower, the risk-positive market environment made it difficult for gold to find demand. Ahead of Tuesday's key macroeconomic data releases from the US, the pair is moving sideways and was last seen trading flat on the day at $1,798.

Later in the session, the US Census Bureau will release the Durable Goods Orders for June. However, investors could remain on the sidelines and show no reaction to this report while waiting for the FOMC to announce its monetary policy decisions on Wednesday.

Previewing the data, "estimates for Durable Goods Orders are likely too high, as past misses on this release and disappointments in other figures for June allude to," said FXStreet analyst Yohay Elam. "The market reaction will likely be muted ahead of the Fed – apart from a minor mean-reversion – but the data would be useful for trading GDP on Thursday."

Durable Goods Orders Preview: Why expectations could be too high, data useful for trading GDP. The Conference Board's Consumer Confidence Index for July and Richmond Fed Manufacturing Index will be featured in the US economic docket as well. On Wednesday, market participants will look for clues regarding the timing of asset tapering in the Fed's Monetary Policy Statement. Moreover, FOMC Chairman Jerome Powell's remarks on the policy outlook amid renewed concerns over the coronavirus Delta variant hurting the recovery will be looked upon for fresh impetus.

Gold Futures: Scope for further downside

With Tuesday's subdued trading action, key technical levels remain intact for gold. Meanwhile, the Relative Strength Index (RSI) indicator on the daily chart continues to edge lower toward 40, suggesting that the near-term outlook remains bearish.

Currently, gold is trading a tad below the 100-day SMA at $1,800 and sellers are likely to remain in control unless the price manages to hold consistently above that level. On the downside,  $1,790 (July 23 low) aligns as the next target ahead of $1,775 (Fibonacci 61.8 retracement of April-June uptrend).

On the other hand, $1,820 (200-day SMA) aligns as key resistance before $1,830/$1,833 area (Fibonacci 38.2% retracement, 50-day SMA).


Share: Tweet this or Share on Facebook


XAU/USD retreats from multi-month top amid modest USD recovery, ahead of US GDP
XAU/USD retreats from multi-month top amid modest USD recovery, ahead of US GDP

Gold price pulls away from a fresh multi-month top amid a modest US Dollar strength. Bets for smaller rate hikes by Federal Reserve, recession fears should help limit losses...

26 Jan 2023

Microsoft: Still Trapped Within Descending Channel
Microsoft: Still Trapped Within Descending Channel

Microsoft Corp., an American multinational technology conglomerate currently ranked the third largest company by market capitalization ($1.728T) which actively engages...

24 Jan 2023

Same story new week
Same story new week

Chinese New Year celebrations – many centres are closed in Asia. Treasuries sagged to end on a bearish week. USDIndex at 101.30 low as the market continued...

23 Jan 2023

EUR is stuck consolidating
EUR is stuck consolidating

EURUSD is going to consolidate. The current quote is 1.0810. In the nearest future the EUR might experience some local pressure because the weather in Europe has changed...

20 Jan 2023

EURGBP Fails To Break 0.89
EURGBP Fails To Break 0.89

In today’s European session, Germany’s final CPI rate for December registered 8.6% on an annual basis, in line with market expectations and the previous value...

18 Jan 2023

XAUUSD: Weekly Review 16-20 January 2023
XAUUSD: Weekly Review 16-20 January 2023

Gold jumped to start 2023 with strong gains, as the positive momentum from December carried over into the new year. Last year’s headwinds, particularly the strengthening...

17 Jan 2023

Editors' Picks

FXCM information and reviews
ActivTrades information and reviews
RoboForex information and reviews
MultiBank Group information and reviews
MultiBank Group
Libertex information and reviews
Vantage information and reviews

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.