Worries over the exponentially-increasing Coronavirus cases globally and deteriorating US-China relations continue to lend support to the safe-haven appeal of gold. This coupled with the recent weakness in the US dollar provided additional support for the dollar-denominated commodity.
However, excitement over a potential Covid-19 vaccine has reinstated investors’ desire for riskier assets. The risk-on resurgence was bolstered by a decent uptick in the US Treasury bond yields, which could hamper further gains in the non-yielding metal.
Consequently, a fresh bullish wave will likely be met by strong resistance at the $1,810 level. This means buyers will be waiting to see some gains above that resistance line in the near-term before jumping on board and taking the price higher.
Moving on, market participants will be looking at the US economic docket—which features the housing market data and Preliminary Michigan Consumer Sentiment Index—for clues today. The data release is expected to have a decent amount of influence on the price dynamics of the USD.
Gold (XAU) Value Forecast — July 17
XAU/USD Major Bias: Bullish
Supply Levels: $1,810, $1,815, and $1,818
Demand Levels: $1,800, $1,796, and $1,789
Gold has recaptured the $1,800 level after a strong retrace yesterday. As projected, the yellow metal was met with strong support at the $1,796 level and managed to pick up some buyers at that line.
Although gold appears to have stabilized above $1,800, a decline from this level is not off the table. However, the $1,796-89 support region is expected to hold.
On the flip side, a move upwards appears to be the next possible course of action, considering the overall bias is still bullish. We are likely to see a retest and break above the $1,810 supply level.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
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