Market Update: Gold – Has A New Up Leg Begun?

July 29, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, today we look at Gold as the price continues its post FOMC run higher.

Inflation continued to be a key topic of yesterday’s FOMC. It was seen as above target and could be higher and more persistent than first thought. Based on this talk you would have thought the USD would rise but little in the way of direct responses didn’t do it any favours and it declined. Sellers have continued to hold control today as risk majors and Gold continue to see strong sessions today.

Gold had a choppy week before we saw yesterday’s FOMC. Once the dollar found its direction we saw a strong rebound on Gold, buyers adding 0.38% to the session close. Today buyers have made a new statement pushing the price back above the 1827 level. Buyers now closing in on point 4 short term resistance.

Gold daily chart

Looking at the chart below we can see the double bottom that started the first buyer run, sellers checked that run at 2 and we’ve seen two new higher lows at 3 and 5. With fundamentals back against the USD in the short term, could this be the drive to get Gold back on track? If we can see a close above short-term resistance could that create enough momentum to see a new leg up to possibly test supply and resistance levels at 6?

All times are AEDT.