Gold Weekly Price Analysis – August 01
Gold price may find resistance at $2,020 provided the $1,984 price level is a broken upside. Further increase in the bulls’ momentum may extend to $2,040.
Resistance levels: $1,984, $2,020, $2,040
Support levels: $1,901, $1,871, $1,850
XAUUSD Long-term Trend: Bullish
The gold price gained over 80% of the trading days in July. Last week, it hit a fresh all-time high. The resistance level of $1,984 was tested before a short pullback is noticed and it started consolidation at the level for three days before the market closed. The bullish movement may continue in August.
The rise in the price of Gold may continue as long as the Relative Strength Index indicator holds above 70 levels, coupled with the Exponential moving averages displaying a bullish outlook as the 9 periods EMA at $1,930 and 21 periods EMA at $1,871 price levels. Gold price may find resistance at $2,020 provided the $1,984 price level is a broken upside. Further increase in the bulls’ momentum may extend to $2,040.
However, the trader should exercise the patient for the daily candle to break up and close above $1,984, wait for the price retracement, and place Buy limit order at $1,986, Take profit at $2,020, Stop loss at $1,950.
XAUUSD Medium-term Trend: bullish
Gold is bullish on the 4-hour chart. It appears that the metal is finding resistance at a psychologically important $2000 mark as it struggles to extend the series of higher highs and lows. The price retracement from the resistance level at $1,984, may lead to near term correction in case the RSI flips below 70 levels. Until this happens, the gold market condition remains bullish as the dollar index remains bearish.
In case the yellow metal is resisted at $1,984 and its reverse, traders may place a sell stop order at $1,933, Take profit at $1,910, Stop loss at $1,995.