Gold finds support in 1,730.00

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Source: Dukascopy Bank SA
The price for gold has found support in the 1,730.00 level and recovered. By the middle of Tuesday's European trading hours, the price had reached the resistance of the 50-hour simple moving average near 1,742.50.

Economic Calendar Analysis



At 13:45 GMT, the US Flash Services PMIs could impact the rate through an adjustment in the value of the US Dollar.

On Thursday, at 12:30 GMT the US quarterly Preliminary GDP data is set to cause a move in the US Dollar and all of financial markets.

XAU/USD short-term forecast

A continuation of the recovery of the commodity price is expected to encounter resistance in the 1,745.00/1,755.00 range, which has acted as resistance and support throughout the recent months. In addition, note the approaching 100-hour simple moving average near 1,753.00.

On the other hand, a decline of the metal's price is expected to once again look for support in the 1,730.00 level, before reaching the 1,710.00/1,715.00 zone.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the price appears to have bounced off the May and June low level zone, which has turned from support into resistance. In regards to the future, note the 2021 and 2022 low level zone at 1,675.00/1,680.00.

Daily Candle Chart


Long sentiment increases

On Monday, the sentiment on the Swiss Foreign Exchange was 63% bullish. Namely, 63% of open position volume was in long positions.

Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 62% to sell the precious metal.

On Tuesday, 65% of positions were long and set up orders were 63% to sell.

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