ST-37 City, Mwali, Fomboni Moheli Comoros Union.
ST-37 City, Mwali, Fomboni Moheli Comoros Union.
Jul 08
2024
Gold price attracts some sellers below the $2,400 barrier on Monday. Yellow metal loses traction as China's Central Bank has stopped buying for the second month in June.
The gold price edges lower on the day. Technically, the yellow metal maintains the bullish trend on the daily chart as it holds above the key 100-day Exponential Moving Average (EMA). The precious metal sustains a breakout above a descending trend channel that formed on May 10. The path of least resistance of Gold is to the upside as the 14-day Relative Strength Index (RSI) stands in the bullish zone above the 50-midline.
The first upside barrier for XAU/USD will emerge at a $2,400 psychological level. The additional upside filter to watch is $2,432, a high of April 12. The next potential resistance zone is seen at an all-time high of $2,450.
On the downside, the initial support level for the yellow metal is located at the $2,330-$2,340 zone, representing a low of June 17 and the former resistance zone. Extended losses could see a drop to $2,273, the 100-day EMA.
On the other hand, the rising speculation that the US Federal Reserve (Fed) would cut the interest rate in the third quarter might lift the non-yielding Gold price. Furthermore, the political uncertainty in France after exit polls indicated the final round of the French parliamentary elections pointed to a hung parliament, which might boost safe-haven assets like Gold. Traders will take more cues from the Fed's Chair Jerome Powell, who testifies on Tuesday ahead of the US June Consumer Price Index (CPI) inflation data on Thursday.