29.07.201913:40 Forex Analysis & Reviews: Analysis of gold for July 29, 2019

Gold continued its rally and surged above $1,410 but failed to surpass the $1,440 resistance level and head towards $1,500.

Gold fell by 0.50% last week after suffering its sharpest one-day slide in three weeks when the ECB decided to hold on to the rates instead of expected rate cuts this year. The ECB addressed the shortcomings and challenges for the economy but decided to let the rate cut to be delayed till early 2020. Markets' attention this week will be on the highly-anticipated US Federal Reserve meeting on July 30-31, where traders expect the Fed to cut rates by at least 25 basis points. This scenario will provide support to the yellow metal. This way, gold may be able to break above the $1,440 strong resistance area and head towards $1,500.

The safe-haven gold did not benefit from falling Asian stock markets despite concerns surrounding Hong Kong political crisis and uncertainty regarding the developments in the US-Sino trade talks. In spite of the recent flat movement of gold, central banks from different countries are showing interest in buying it as the global economic crisis is progressing. The global search of safe assets has currently touched the Crypto market. Therefore, gold is not likely to continue its growth.

TECHNICAL OVERVIEW:

Currently, the price is above $1,410 held by the trend line formed since July 1. The price is forming an Ascending Triangle pattern, while $1,440 is strong resistance. As the recent higher highs indicate, the price kept on climbing higher. Meanwhile, the fact that there is no Bearish Divergence points at the further rally. As far as the price remains above $1,400 with a daily close, the bullish bias is expected to continue and gold to move towards $1,500.

TECHNICAL LEVELS:

SUPPORT- 1,380 / 1,400 / 1,410

RESISTANCE- 1,440 / 1,450 / 1,500

BIAS- Bullish

MOMENTUM- Volatile