Jump to content

Gold Prices on Course for Worst Month in Over a Year, More Pain Ahead for XAU/USD?


Recommended Posts

Jul 21, 2022 | DailyFX
Daniel Dubrovsky, Strategist


  • Gold is on course for worst month in over one year
  • This is despite a weaker US Dollar in recent days
  • IGCS data seemingly hinting at more losses ahead

Gold Prices on Course for Worst Month in Over a Year, More Pain Ahead for  XAU/

Gold prices weakened over the past 24 hours, sending XAU/USD close and closer towards the 2021 low at 1676. In fact, July has been quite a dismal month for the yellow metal so far. If losses hold at the time of writing, gold is looking at a 6.4% loss in July. That would be the worst monthly performance in over a year.



On the daily chart, gold has confirmed a breakout under the September 2021 low at 1722, inching closer towards the 2021 low at 1676. The latter could play out as key support, with the 20-day Simple Moving Average aiming lower. This line could hold as resistance in the event of a turn higher, perhaps reinstating the broader downside focus. Further losses place the focus on the 78.6% Fibonacci extension at 1656.



Gold Prices on Course for Worst Month in Over a Year, More Pain Ahead for XAU/USD?

Chart Created Using TradingView

Link to comment

Gold Price Update: XAU/USD on Track for 6th Consecutive Weekly Decline

Gold Price (XAU/USD) Listless, Waiting For a Shot of Fed-Inspired Volatility

Jul 21, 2022 | DailyFX
Richard Snow, Analyst


  • Tightening global monetary policy weighs on gold as the ECB is set to join the rate hike club
  • Gold on track for 6th consecutive weekly decline. 1677 remains a key level of resistance as the metal continues further into oversold territory


Both drops through 1800 and 1760 have not looked back as the precious metal looks set to record a 6th consecutive week of losses. While it appears that global recession fears have eased, global commodity prices continue the downward spiral. Negative fundamentals have dominated gold’s direction and not even a slightly weaker dollar was able to stop the bearish trend.

The 1677 level marks a full Fibonacci retracement of the 2020-2021 move and could trigger a spate of further selling if broken with reasonable momentum. The MACD shows that momentum appears intact for the time being but the RSI continues to trade in oversold conditions – raising the risk of a potential pullback in the coming days. Support appears at 1677, 1645 and then 1557 with resistance all the way back at 1760.

Gold (XAU/USD) Daily Chart

Gold Price Update: XAU/USD on Track for 6th Consecutive Weekly Decline

Source: TradingView, prepared by Richard Snow

The weekly chart helps to show the significance of the 1677 level as it kept sellers at bay throughout 2021. Interestingly, the RSI on the weekly is approaching oversold conditions, suggesting that we may see a period of consolidation or even a short-term pullback if 1677 holds in the coming days. However, given the weak fundamentals and strong trend – it is difficult to see any longer-term ascendency in gold meaning further selling, on a break below 1677, appears more likely. 1677 remains key for gold’s next move.

Gold (XAU/USD) Weekly Chart

Gold Price Update: XAU/USD on Track for 6th Consecutive Weekly Decline

Source: TradingView, prepared by Richard Snow

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • DIMO's platform seems to be shaking things up in the car world! Being able to get useful info about your car easily sounds great for drivers. And now that their token is on Bitget exchange, more people can get in on it. Super exciting news!
    • Just for completeness, I mean lists of companies. Many thanks, Peter
    • It’s one of the most popular traded markets on our end, and we take a look at the S&P 500’s technical overview in both weekly and daily time frames, the strategies to deploy for conformist, contrarian and ‘hold’ camps.   Written by: Monte Safieddine | Market analyst, Dubai   Publication date: Tuesday 27 February 2024 06:48 Dive into the conflicting sentiments of IG clients versus COT speculators and stay ahead of the game with upcoming market events. Don't miss out on this essential guide to understanding the current state of the S&P 500 and preparing for what lies ahead!       This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.    
  • Create New...