Gold Retreats from Highs as Bearish Signals Stack Across Timeframes

LONDON (July 25) After reviewing the movements of the gold futures in different time patterns, I anticipate that after testing a low $3314 on July 17, gold futures tested a recent high at $3451 on July 22 within five trading session and met an advent of selling spree that pushed the futures back to the pavilion – below the 200 DMA within two trading session amid growing optimism of tariff trade deals.

Despite losing its haven potential at higher price, gold could still feel some haven demand as the markets hunkered down before a series of key events in the coming week as the focus initially will be on the Federal Reserve, which is widely expected to keep the interest rates unchanged despite repeated calls from the US President Donald Trump to cut rates.

At the same time, Fed Chair Jerome Powell has signaled that uncertainty over the inflationary effects of Trump’s tariffs is likely to keep the Fed from cutting interest rates anytime soon.

On the other hand, Trump’s August 1 deadline for his steep trade tariffs will also pass next week, with focus squarely on whether more trade deals will be met by August 1 or not.

Investing.com