Gold Is Sideways At $1790/oz - $1810/oz

(July 26th, 2021 - Thang Le)

Gold has been sideways at the zone $1790/oz - $1810/oz for 2 weeks. The US market is significantly divergent because the cash is withdrawn from the ETF fund and the stock market. Moreover, the US 10Y bond yield fell from 1.61 to 1.23 which shows the "cash is king" trend this month.

The DXY - US Dollar Index climbed up to the highest level in 2021. There is a chance for USD to come back as a reserve currency this year. Moreover, the FED announced some news in the beginning of July that they might put the rate up at the end of this year if the economic recovery comes closer.

Trendline analysis

On a daily chart, the uptrend is broken by the bears at $1910/oz which made a significant negative to the bulls. Gold climbed up to $1818/oz and then fell back to the sideways zone $1790/oz - $1810/oz. However, there is not any significant trendline on charts, at least this week.

Resistance/support analysis

The resistances are $1854/oz and $1887/oz.

The supports are $1770/oz and $1790/oz.

Fibonacci analysis

The Fibonacci has been measured on the daily chart at:

The $2080/oz: this is the highest price of gold over the time.

The $1760/oz: this is the oldest support on the bearish trend. (formed from August 2020).

Last week, gold reached the Fibonacci 61.8 ($1818/oz) but could not come over. This sign shows that the bulls is not ready for an uptrend. The Fibonacci is a dynamic resistance for the bulls this time.

In conclusion, technically, there is no significant change. Gold is sideways and investors should keep an eye to the GDP news this Thursday.