Gold Guinea Show Signs of Short-Term Weakness Amids Conolidation

The 2-hour candlestick chart of Gold Guinea July Futures indicates a strong bearish sentiment. After facing resistance near the 78450–78500 zone, the price faced a steep fall, forming consecutive bearish candles. The recent candles are consolidating near the 77950–78000 support level, suggesting a potential pause or indecision after the sharp drop. The presence of long lower wicks shows buying interest at lower levels, but the lack of bullish follow-through suggests that bears are still in control. The absence of higher highs and consistent lower lows confirm a short-term downtrend. A break below 77950 could open the gates to test 77700, while resistance remains near 78250.

Fundamentally, gold is currently under pressure due to a combination of rising US Treasury yields and expectations that the Federal Reserve may delay rate cuts amidst sticky inflation. Investors are preferring dollar-backed assets, leading to outflows from precious metals. Additionally, global risk sentiment remains relatively stable, reducing safe-haven demand. However, geopolitical tensions and potential recessionary fears continue to provide a long-term bullish backdrop for gold. In the Indian context, rupee movement and import policies also impact local gold futures pricing. Until clarity emerges on US economic direction, gold may remain choppy with a short-term bearish bias.