Gold encounters resistance

Source: Dukascopy Bank SA
Since late hours of June 16 trading, the price for gold has been facing a descending resistance line. On Monday, the pair bounced off the resistance line and was looking for support in the hourly simple moving averages.

Economic Calendar Analysis



On Wednesday, note the Final US Quarterly GDP data. The data release might cause minor reactions on the chart.

Later on the same day, at 13:00 GMT, the heads of the ECB, Bank of England and the Fed are set to speak at a panel titled "Policy Panel."

XAU/USD short-term forecast

A potential decline of the commodity price could look for support in the last week's low level zone at 1,816.90/1,823.50. Further below note the support zone below 1,810.00.

However, a breaking of the resistance line is expected to encounter resistance in round price levels like the 1,845.00 and 1,850.00.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the price has encountered resistance in the form of the 50 and 200-day simple moving averages.

Daily Candle Chart


Traders are long

On Monday, the sentiment on the Swiss Foreign Exchange was 64% bullish. Namely, 64% of open position volume was in long positions.

Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 79% to buy the precious metal.

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