02 August 2018

XAU/USD- 2 August 2018

  • Dollar
  • Gold

Fundamental Highlights

Gold prices approached again their yearly lows after an easing in trade war tension between the US and China and a hawkish Fed. With the Dollar Index eying the 95 level, the yellow metal is taking a hit as it is failing to get above the $1220 level. At the same time, global demand for gold fell 6% in the first half of this year - the lowest first half total since 2009, according to the World Gold Council (WGC), falling also 4 percent year-on-year in the second quarter.

Technical Analysis

Technically, the prices are failing to break the $1220 support level with a decrease in momentum. If they were to respect the upper trend line illustrated on the chart, we can see prices reaching this year's low at $1211.36 and even break below it.

Support: 1222.20 1217
Resistance: 1228.5 1235

Chart (1H)

XAU/USD Chart 2 August 2018