According to economic analysis, gold trading is influenced by the results of the latest economic data, as initial claims for unemployment in the United States exceeded the expected number of claims of 245 thousand by 228 thousand.

For three consecutive trading sessions, the price of gold has been in a limited correction path to the downside in light of the recovery of the US dollar ahead of this week’s policy decisions by the US central bank, in addition to announcements from the European Central Bank and the Bank of Japan. Gold’s losses reached the support level of $1,956 per ounce before prices stabilized around the $1,965 per ounce level at the time of writing. So far, according to the performance on the daily chart, the price of gold is still on an upward correction path, and as I mentioned earlier, the psychological resistance of $2,000 per ounce will remain an easy target for the bulls if prices return to the $1973 and $1985 resistance levels.

According to economic analysis, gold trading is influenced by the results of the latest economic data, as initial claims for unemployment in the United States exceeded the expected number of claims of 245 thousand by 228 thousand. Continuing claims for the prior period beat the forecast of 1.729 million with a total of 1.754 million, while the Philadelphia Fed Manufacturing Survey for July came in below the forecast of -10 with a reading of -13.5.

Earlier, US Building Permits for June missed the expected number of 1.49 million at 1.44 million. Home starts for the period also fell short of the expected number of 1.48 million with 1.434 million. US retail sales for June beat expectations at 0.5%, a change of 0.2% (monthly). On the other hand, the retail sales group for the month beat the expected change of -0.3% with a change of 0.6%, while non-auto retail sales lost 0.3% with a change of 0.2%.

• Gold the price is now trading below the 100 hourly moving average. However, Friday’s early bounce prevented the XAU/USD gold price from falling to oversold 14-hour RSI levels.
• In the short-term and according to the performance on the hourly chart, the price of gold appears to be trading within a bearish channel formation.
• This indicates a significant short-term bearish bias in market sentiment. Therefore, the bulls – the bulls – will be looking for a bounce around $1972 or higher to $1978 per ounce. On the downside, bears will target short-term gains around $1,960 or lower at $1,952 an ounce.

In the long term and according to the performance on the daily chart, the price of gold appears to be trading within a bullish channel creation. This indicates a significant long-term bullish bias in market sentiment. Therefore, bulls will look to extend the current profit move to around $2,000 or higher to $2,045 per ounce. On the downside, bears will look to pounce on gains around the $1931 support or below the $1891 support.

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