The US equities market took on a risk-off mood after California reinstated lockdown restrictions on businesses and public spaces considering the recent spike in Coronavirus infections in the state.
Furthermore, the prevailing diplomatic US-China tensions over China’s control of Hong Kong extended further support for the USD, which caused demand for the dollar-denominated commodity to stall.
Analysts expect gold to remain pressured in today’s session considering that the greenback will likely capitalize on the market-wide risk aversion.
Meanwhile, market participants will be looking at the US economic data docket, which features the US Consumer Price Index (CPI), for clues today. A worse-than-expected US inflation figure coupled with the worsening Covid-19 outlook could prevent gold from falling far from the $1,800 mark.
Gold (XAU) Value Forecast — July 14
XAU/USD Major Bias: Sideways
Supply Levels: $1,800, $1,810, and $1,815
Demand Levels: $1,790, $1,780, and $1,770
Gold has come under strong bearish pressure as the USD picks up. At press time, gold has broken through the $1,796 support, and investor focus has now been shifted to the $1,789 support level. A sustained dip below this level could open the yellow metal up for further declines to previous support levels.
On the flip side, gold will regain its bullish balance once it climbs above the $1,800 again. Also, a wedge has been formed in the near term making it very likely to see a surge (upwards/downwards).
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