Gold Price Forecast:
- Gold is surrounded by important technical levels ahead of a week with serious market-moving potential
- That said, gold[1] traders may wait to make their move until after next week’s FOMC[2] rate decision
- Bitcoin vs Gold: Top Differences Traders Should Know[3]
Gold Price Forecast: Is This The Calm Before The Storm?
Gold finds itself at a crossroad ahead of a major week for markets. While the current trading week began with a bang in many risk-sensitive assets, gold has enjoyed relatively calm price action and teeters on the brink of a range breakout should US Treasury yields continue to slip. With the July FOMC rate decision fast approaching and gold on the precipice of a potential rally or reversal, price action may slow until the event risk has passed in what could be called the “calm before the storm.”
Gold (XAU/USD) Price Chart: Daily Time Frame (July 2020 - July 2021)
How to Trade Gold: Top Gold Trading Strategies and Tips[4]
That said, a flurry of nearby technical levels will also look to keep gold contained until an appropriate catalyst arrives. To the topside resides the 50-day simple moving average, a recent swing high near $1835 and a Fibonacci level, all of which may make it difficult to establish progress higher.
Not far from the current spot price resides the 200-day simple and exponential moving averages as well as a descending trendline from August. The trendline marks the topside of the descending channel that has been in play since August 2020 and has served as resistance numerous times in the last year.
Gold (XAU/USD) Price Chart: 4 - Hour Time Frame (February 2021 - July 2021)
Evidently, the collection of major technical levels and moving
