Gold Price Analysis Shows the Worse Might Be Over

Gold Price Analysis Shows the Worse Might Be Over

Gold (XAU/USD) struggled to take advantage of the early North America session modest uptick and was confronted with fresh supply around the $1,805 level. This came as investors sought to cart their profits away after gold broke multi-year highs last week. This retrace sent the yellow metal down to the $1,790 mark, where it attracted some dip-buyers.

On the technical scape, this was a pullback to the prevailing ascending trendline and a bounce from this level looks very possible. That said, gold is expected to resume its original bullish trend soon.

Meanwhile, any further gains from this level will likely be met with strong resistance at the $1,815 level. A clean break above that resistance will open gold up to retest its last week’s Wednesday multi-year high ($1,818.09).

On the flip side, a sustained drop below the $1,790 level will put gold under intense sell pressure, which could send it spiraling down towards the $1,770 pivot region.

On other news, the US CPI data release failed to extend any support to the dwindling US dollar demand. Moving on, the dollar-denominated commodity could resume on its bullish momentum in tomorrow’s Asian session as the worsening global Coronavirus crisis takes center stage.

XAUUSD -Hourly Chart

Gold (XAU) Value Forecast — July 14

XAU/USD Major Bias: Bullish

Supply Levels: $1,815, $1,818, and $1,827

Demand Levels: $1,800, $1,790, and $1,780

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