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Gold Bounces, Dollar Strength Continues

ByGoldTradingExperts.com
Published 07/30/2014, 05:42 AM
Updated 07/09/2023, 06:31 AM

Gold bounced around in the range defined by the 20 DMA at the top and the 50 DMA at the bottom yesterday, as the "summer doldrums" type trading continues. This is typified by choppy sideways trading with a downwards bias and narrow trading ranges and is usually seen in July/August as the markets wind down for the holiday season.

The market is well supported around $1287-$1292 on the down side - a break of this level will see an escalation in the decline with $1274 our initial target.

The dollar strength continues, with the rally taking the dollar well above 81, this is bearish for gold and is a major factor in the recent price weakness. Equities near to all time highs add to the overall bearish picture for gold.

Support can be found at $1299-$1301, $1292, $1285-$1287, $1263, $1257-$1260, $1250-$1252, $1237-$1240, $1220-$1225, $1210, $1200 and $1180. A break of $1$180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term - a failure to break the 65 week MA would make this much more likely.

Resistance can be found at $1310, $1318-$1322, $1325-$1326, $1333-$1335, $1340-$1342, $1352-$1354, $1392-$1395, $1400, $1420 and $1435. We appear to be witnessing a second failure to break through the key 65 week MA - this would suggest that the intermediate down trend is intact and a retest of $1240 and possibly $1$180 is likely.

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