Gold trying to breach the 1,900 USD threshold again

Precious metals have been bid this week and gold is up circa 50 USD from Monday's lows, trying to jump above the important 1,900 USD level. At the time of writing, the metal was spotted somewhat below this resistance.

Earlier in the day, the final Q2 US GDP revision showed the US economy shrank -31.4%. This was an improvement from the first estimate of -32.91%. Stocks rose and gold dipped slightly after the report. 

The intraday support now seems to be at around 1,875 USD and if broken to the downside, gold could decline toward the current swing lows of 1,850 USD. However, as long as the metal remains above this support, the medium-term trend still seems bullish.

On the other hand, if gold starts rallying again, the key resistance now appears to be at the 1,900 USD level. If this level is not held, bulls could push gold toward 1,935 USD.

Fundamentally, the bull market should continue, however, technically speaking, gold remains overbought and therefore we cant rule out a deeper correction toward 1,800 USD
Cookie Policy: The Axiory website uses cookies and by continuing using the website you consent to this. Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Privacy Policy.