MARKET PERSPECTIVE:
According to the US Department of Labor, in June, the economy added 209,000 new jobs, lower than expected. This is the slowest job growth since December 2020. Slower job growth may result in the Federal Reserve (Fed) not raising interest rates for the second time this year. This is good news for gold.
The yield on the 10-year US Treasury bond has decreased from its highest level in over 4 months. The DXY index (measuring the fluctuations of the US dollar against 6 major currencies) has dropped to the level of 102.27. The weakening of the USD makes gold more attractive for those holding other currencies.
Gold is currently supported at $1,900 per ounce, but profit-taking pressure has also increased as the price approaches $1,950 per ounce.
The Fed’s meeting is just over two weeks away, scheduled for July 25-26. Traders are expecting an 89% chance of a 25-unit rise during the upcoming meeting.
TECHNICAL ANALYSIS PERSPECTIVE:
Currently, according to the EMA (Exponential Moving Average) indicators, Gold on the Daily timeframe is above all the EMA lines (34, 89, 100, 200). Therefore, the overall trend for Gold in the near future is expected to be bullish.
The EMA 34 on the Daily timeframe is currently acting as a support level at 1939.
The EMA 89 and 100 on the Daily timeframe are also acting as support levels at 1939-1941.
The EMA 600 on the Daily timeframe is currently at the important level of 1897.
The RSI (Relative Strength Index) is close to the oversold region. Therefore, there is a possibility that Gold may experience a corrective rally before a secondary decline. Hence, it is advisable to wait for a good selling point in the coming period.
TRADING STRATEGY FORECAST:
SELL XAUUSD around the price range of 1939-1943.
Stop Loss: 1947
Take Profit 1: 1930
Take Profit 2: 1920
Take Profit 3: 1910
BUY XAUUSD around the price range of 1897-1902.
Stop Loss: 1894
Take Profit 1: 1910
Take Profit 2: 1920
Take Profit 3: 1930
Note: Please risk 1% of your account to ensure proper capital management. Do not risk more than 5% of your capital within the nearest 10 price levels.
Always set a stop loss in every situation. Pay attention to trade according to your current capital. Comment: Join the community group for the earliest support for Gold signals and trading strategies!
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