The price of Gold stabilized above $1,900 an ounce on Friday, but there is still room for further decline on the back of strong US economic data and hawkish reports from the Federal Reserve pointing to potential rate hikes going forward. US GDP growth for the first quarter was sharply revised upward to 2% from 1.3%, while initial jobless claims eased unexpectedly last week, giving the Fed room for further rate hikes. Fed Chairman Jerome Powell said it would take time to bring inflation down to the 2% target and reiterated two more rate hikes this year that are putting pressure on the Gold price right now.
GOLD Weekly Forecast July 3 — 7, 2023
Gold completes the trading week with a correction near the 1905 area. XAU/USD quotes continue to move as part of the decline and the bullish channel. The potential remains to complete the formation of the “Wedge” reversal pattern. Moving averages indicate the presence of a bullish trend for Gold. Prices are again testing the area between the signal lines, which indicates pressure from buyers and a potential continuation of price growth. At the moment, we should expect an attempt to develop a decrease in prices and a test of the support level near the area of 1885. Further, a rebound in prices up and continued growth of Gold with a potential target above the level of 2205.
An additional signal in favor of the rise in quotes and prices for Gold in the current trading week July 3 — 7, 2023 will be a rebound from the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the growth option for XAU/USD quotes will be a fall in price and a breakdown of the 1835 area. This will indicate a breakdown of the support level and a continued fall in Gold prices with a target below the level of 1775. Confirmation of the growth in the value of the asset will be a breakdown of the resistance area and closing of quotes above the level of 1945, which will indicate on the breakdown of the upper border of the “Wedge” reversal pattern and the beginning of the pattern with targets at the top.
GOLD Weekly Forecast July 3 — 7, 2023 suggests an attempt to develop a decline and test the support level near the area of 1885. Then, the continued growth in Gold prices with a target above the level of 2205. A test of the trend line on the relative strength index (RSI) will come out in favor of the rise in quotes. Cancellation of the growth option for GOLD will be a fall and a breakdown of the level of 1835. This will indicate a continued decline in quotes to the area below the level of 1775.
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