Gold Price to Eye Monthly High on Failure to Close Below 50-Day SMA

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By :  ,  Strategist

Gold Price Outlook: XAU/USD

The price of gold may attempt to retrace the decline from the monthly high ($2478) should it continue to close above the 50-Day SMA ($2369).

Gold Price to Eye Monthly High on Failure to Close Below 50-Day SMA

Keep in mind, the recent pullback in the price of gold emerged following the failed attempt to test the July high ($2484) and bullion may face a larger correction if it struggles to hold above the July low ($2319).

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Nevertheless, gold may continue to serve as an alternative to fiat-currencies as major central banks start to switch gears, and bullion re-establish the bullish trend rom earlier this year amid the threat of a policy error.

XAU/USD Price Chart – Daily

Gold Price Daily Chart 08072024 

Chart Prepared by David Song, Strategist; XAU/USD on TradingView

  • The price of gold remains under pressure following the failed attempt to test the yearly high ($2484), and failure to hold above the weekly low ($2364) may lead to a test of the July low ($2319).
  • Next area of interest comes in around the June low ($2287) with a break/close below the $2280 (100% Fibonacci extension) to $2290 (100% Fibonacci extension) region opening up $2240 (61.8% Fibonacci extension).
  • However, lack of momentum close below the 50-Day SMA ($2369) may curb the recent weakness in the price of gold, with a move above $2450 (38.2% Fibonacci extension) bringing the monthly high ($2478) on the radar.
  • A breach above the yearly high ($2484) may push the price of gold towards $2500 (50% Fibonacci extension), with the next area of interest coming in around $2550 (61.8% Fibonacci extension) to $2570 (161.8% Fibonacci extension).

Additional Market Outlooks

US Dollar Forecast: EUR/USD Stalls Ahead of January High

AUD/USD Forecast: RSI Falls Back into Oversold Zone

US Dollar Forecast: USD/JPY Selloff Pushes RSI into Oversold Zone

US Dollar Forecast: EUR/USD Opening Range for August in Focus

--- Written by David Song, Strategist

Follow on Twitter at @DavidJSong

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Related tags: Gold Trade Ideas David Song

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