Precious metals have been bid this week and gold is up circa 50 USD from Monday’s lows, trying to jump above the important 1,900 USD level. At the time of writing, the metal was spotted somewhat below this resistance.

Earlier in the day, the final Q2 US GDP revision showed the US economy shrank -31.4%. This was an improvement from the first estimate of -32.91%. Stocks rose and gold dipped slightly after the report. 

The intraday support now seems to be at around 1,875 USD and if broken to the downside, gold could decline toward the current swing lows of 1,850 USD. However, as long as the metal remains above this support, the medium-term trend still seems bullish.

On the other hand, if gold starts rallying again, the key resistance now appears to be at the 1,900 USD level. If this level is not held, bulls could push gold toward 1,935 USD.

Fundamentally, the bull market should continue, however, technically speaking, gold remains overbought and therefore we cant rule out a deeper correction toward 1,800 USD



About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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