Gold Price Forecast: Gold Grasps for 1700 Following Five-Week-Plunge

[MongiIG]

Jul 18, 2022 | DailyFX
James Stanley, Senior Strategist

GOLD TALKING POINTS:

• After spending late-May and early-June in consolidation, Gold prices have plunged to fresh 11-month-lows during the current five-week sell-off.
• Gold prices ran into the psychological level of 1700 last week but it’s the support a little lower, around 1673-1680, that looms large on the matter. A test below that zone leads to fresh two-year-lows.

Gold prices have started the week with a bounce which, given the way last week went, is a bit of reprieve for bulls. Gold prices have been falling for over a month now, following the build of a rising wedge pattern in June that led to a strong and decisive bearish breakdown.

That breakdown finally started to find a bit of support last week at the psychological level of 1700, and as looked at in this week’s Technical Forecast, that can keep the door open for a bit of a bounce. The first zone of interest for that theme is already in-play, spanning from Fibonacci levels at 1723 and 1733.