The gold market is full of risks, investors should be careful

Jul 19

• Gold prices (XAU/USD) extended their losing streak for a third trading day, falling to nearly $2,410 during the European session on Friday. The precious metal is under profit-taking pressure after hitting a record high above $2,480 on Tuesday. The strong recovery of the USD and bond yields pulled gold prices lower.
  

• Expectations for Donald Trump to return as President of the United States have increased following his assassination. The prospect that President Joe Biden could abandon his re-election bid due to his health also boosted Trump's chances of winning. Trump, with his protectionist trade policies, has increased the attractiveness of the USD, contributing to downward pressure on gold prices.
  

• Political uncertainty and geopolitical tensions, along with demand for gold from central banks, could limit the decline in gold prices. Investors see any further price decline as a buying opportunity, based on expectations that prices will rebound once current negative factors are resolved.
  

Price range to note:

Buy zone: 2399 - 2401
Stop loss: 2395
Take profit 1: 2410
Take profit 2: 2420

Buy zone: 2391 - 2389
Stop loss: 2385
Take profit 1: 2390
Take profit 2: 2400

Jul 19

Note

The gold price falling to the lowest level of 2,394 USD during the US session on Friday showed strong market volatility. This may be due to the impact of the stronger USD and high bond yields. When the USD appreciates, gold becomes more expensive for investors holding other currencies, reducing demand for gold. At the same time, higher US bond yields increase the opportunity cost of holding gold, since gold does not yield interest, making it possible for investors to turn to bonds to take advantage of higher yields.

Jul 22

Note

Gold prices attracted some buyers and broke a three-day losing streak amid a slightly weaker USD. US political developments prompted some reversal of the 'Trump deal' and weighed on the dollar. Bets on a Fed rate cut in September continue to weaken the USD and favor the unprofitable currency pair XAU/USD.

Jul 22

Note

Gold prices are attempting to recover from $2,400, after breaking a three-day correction from a record high of $2,484. Gold prices took advantage of broad US dollar weakness coupled with sluggish US Treasury yields even as the market remained risk-averse.

Jul 23

Note

Gold prices extended their recent correction from record highs hit last week and fell to their lowest in more than a week on Monday. US President Joe Biden's withdrawal from the 2024 Presidential election has increased the chances of Donald Trump becoming the next US President, raising hopes of a looser regulatory environment.