Gold Prices Hold Support for Second Week: Are Bears Finished?

London (July 28)  The past three months have seen aggressively bearish price action take over Gold prices. After spending most of Q1 in a range, sellers started to gain control in mid-April as US Dollar strength began to show. That theme of USD-strength and Gold weakness remained through the rest of Q2 and into the first few weeks of Q3, until prices eventually ran into support last Thursday around the release of comments from President Trump regarding US interest rate policy. Current support continues to show at the 50% marker of the 2014-2016 major move. After a bounce from this area to close last week, prices have continued to test this level through this week’s price action but – to date, bears haven’t yet been able to make much ground. This highlights an interesting area of support in a key market ahead of a really big batch of headline risk on the economic calendar for next week. 

Gold Daily Price Chart: Q1 Range Leads to Q2 Slump, Fibonacci Support Holds the Lows Past Week
Gold Prices Hold Support for Second Week: Are Bears Finished?
 Chart prepared by James Stanley

Next Week’s Calendar Brings Plethora of Headline Risk

Going along with this week’s back-and-forth price action in Gold was a similar such observation in the US Dollar. The Greenback’s Q2 up-trend was a key driver of the sell-off in Gold prices, and as Dollar strength has remained at bay this week, so has continued selling in Gold. But next week brings a plethora of headline risk as we get rate decisions from Central Banks in Japan, the US and the UK, along with the release of key inflation data out of Europe and jobs numbers out of the United States (NFP is on Friday). This makes for what could be an especially volatile backdrop as we have significant high-risk events on the calendar for every day next week.

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