On Monday, the “risk aversion” movement is dominant in the market. Gold price remains under pressure around $1,773 an ounce, down 0.10% on the day as this supports the safe-haven demand for the US dollar. Recently rising hopes for the US Federal Reserve’s (Fed) interest rate hike by 0.75% in September are also keeping dollar buyers hopeful. So, what developments should you pay attention to this week? What levels below are important?
Factors to consider in the gold market
S&P 500 Futures suffered nearly 4,138 losses. Meanwhile, US 10-year Treasury yields are performing mixed. According to analyst Anil Panchal, this points to the unpleasant mood in the market. It should also be noted that Wall Street indicators closed negative. It is worth noting that US 10-year Treasury yields rose 14 basis points to 2.83 percent. This renewed the strength of the US dollar.
The US Dollar Index (DXY) is strengthening around 106.75, up 0.15 percent on the day. Meanwhile, it is expanding its recovery moves on Friday at the latest. cryptocoin.com As we reported, a strong US jobs report for July supported the hawkish Fed bets. However, Non-Farm Employment (NFP) data rose to 528,000, compared to the previously revised 250,000 and 398,000. Also, the Unemployment Rate fell to the expected 3.6 percent and 3.5 percent compared to previous data.
Taiwan and China rivalry is in the focus of investors
The US-China rivalry surrounding Taiwan is also keeping dollar buyers hopeful. Reuters suggested that China is ready for “regular” military exercises east of the Taiwan Strait line. However, China’s Foreign Ministry announced on Friday that it will impose sanctions on US House Speaker Nancy Pelosi over her visit to Taiwan. On the other hand, Taiwan’s Ministry of Defense reported that 66 Chinese aircraft were operating in the Taiwan Strait on Sunday. Also, US Secretary of State Anthony Blinken stated that China’s provocative actions are a significant escalation.
Over the weekend, China’s trade figures for June pointed to optimistic results, with Exports increasing at the highest level of the year. However, the Balance of Trade rose to $101.26 billion against estimates of $90 billion and $97.94 billion. Given China’s status as one of the world’s top gold consumers, tighter trade figures seemed to have surveyed XAU/USD bears recently. On the other hand, a light calendar ahead of Wednesday’s US Consumer Price Index (CPI) could highlight risk catalysts for the new impulse.
Technical analysis: What to expect in gold price
Anıl Panchal shared his technical analysis while pointing out the important data in the gold price. Gold price is leading the previous day’s U-turn from the 50-DMA hurdle towards the two-week support line. 50 DMA is currently about $1,767. Considering the recent RSI pullback and the MACD line, XAU/USD is likely to break the sudden trendline support. However, the 21-DMA level surrounding $1,738 could push towards $1,680. Alternatively, an upside break of the 50-DMA resistance near $1,788, the downward sloping resistance line from May stands as a major hurdle to the upside.
Islam Memiş warns investors
On the other hand, Gold and Money Markets Specialist İslam Memiş shared his thoughts. The expert says the price is $1,800 per ounce, but technically a sale is needed. Pointing to the non-farm employment data in the USA, İslam Memiş said that this was behind the sharp decline in parities. He says that while the range he followed in August was $1,730-1,780, it would need to close above $1,780 for two days to see $1,800.
Finally, while drawing attention to the value of 1,030 dollars per gram gold, he announced that he was looking for an opportunity to buy from lower numbers. Saying that he expects technical declines in August, the analyst; He thinks there will be a boom in BTC, cryptos, gold and silver in September.
