Gold Price is looking for fresh 2022 lows under $1700

The price of gold has firmly fallen below the $1700 support level. As the asset has not yet shown any indications of recovery, the precious metal is projected to continue to decline. It has recently recorded an 11-month low at $1690. The asset has broken the volatility constriction to the downside, and bears are now free to attack. The shining metal is on track to reclaim its $1689 seasonal lows.

At its policy meeting on July 26–27, the U.S. Federal Reserve is widely anticipated to increase interest rates by 75 basis points.
Ilya Spivak, a currency strategist at DailyFX, told Reuters that “clearly inflation expectations are declining because the Fed and other central banks are embarking on aggressive tightening regime, which is weakening gold’s appeal.”

Technically, August gold futures bears have the solid overall near-term technical advantage. Prices are trending lower on the daily bar chart. However, the recent “collapse in volatility” on the daily bar chart (whereby at least three price bars in a row are significantly smaller than previous price bars) suggests a bigger price move is coming soon. It’s important to note that markets typically vacillate between periods of higher volatility and lower volatility, and at present the gold market is in a period of low volatility. Bulls’ next upside price objective is to produce a close above solid resistance at $1750. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1650. Reported by Kitco.

Investor should be noted that gold chart is in down trend line and in range from $1689 to $1714. First resistance is seen at this week’s high of $1707 and then at $1714. First support is seen at $1685 and then at the July low of $1680. Investment is risky, so investors should set stop-loss function to protect their capital.

Analyzed by: Ms. Teang Riya Independent Analyzed

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