Gold (XAUUSD) trading commentary on 7/3/2023
Gold prices are having a hard time gaining traction during the US session on Monday and extending the sideways period around the $1,850 level. Although the US Dollar remains under modest selling pressure, the rebound witnessed in the 10-year US Treasury bond yields capped the upside momentum of XAU/USD.
On Friday, Gold prices had a daily close above the bearish 21-Day Moving Average (DMA) at $1844. As a result, Gold bulls braced themselves early on Monday before changing course, following a 14-day decline in the Relative Strength Index (RSI). Momentum indicators are now threatening the 50.00 level once again, which is likely to help prolong Gold's corrective downside. If that materializes, Gold prices could drop further to test resistance turning support at the 21 DMA. A clear downside break of the latter would call for a test of Friday's low of $1,835.
Alternatively, if buyers manage to fight back, Gold's rally could resume, boosting the slightly bullish 50 DMA resistance at $1,870. Ahead of that, the $1,858-$1,860 supply zone could be a tough one to overcome for Gold optimists.
Recommendations for trading gold:
Buy 1840-1839
Stop Loss: 1837
Take profit 1: 1845
Take Profit 2:1855
Take profit 3: 1860
sell 1865-1867
Stop Loss: 1869
Take profit 1: 1850
Take profit 2:1845
Take profit 3: 1840
Note: Always set TP and SL in all trading cases
On Friday, Gold prices had a daily close above the bearish 21-Day Moving Average (DMA) at $1844. As a result, Gold bulls braced themselves early on Monday before changing course, following a 14-day decline in the Relative Strength Index (RSI). Momentum indicators are now threatening the 50.00 level once again, which is likely to help prolong Gold's corrective downside. If that materializes, Gold prices could drop further to test resistance turning support at the 21 DMA. A clear downside break of the latter would call for a test of Friday's low of $1,835.
Alternatively, if buyers manage to fight back, Gold's rally could resume, boosting the slightly bullish 50 DMA resistance at $1,870. Ahead of that, the $1,858-$1,860 supply zone could be a tough one to overcome for Gold optimists.
Recommendations for trading gold:
Buy 1840-1839
Stop Loss: 1837
Take profit 1: 1845
Take Profit 2:1855
Take profit 3: 1860
sell 1865-1867
Stop Loss: 1869
Take profit 1: 1850
Take profit 2:1845
Take profit 3: 1840
Note: Always set TP and SL in all trading cases
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.