Where is Gold heading?

After consecutive hike U.S interest rates, gold price still resilience to rally up toward $2000 per ounce. However, price has stalled in the last two months: (1) traded to a month high of $1983 per ounce and declined to the low of 1893 in June and traded higher to $1987 and closed at $1965 per ounce by the end July.

Starting this month, Gold price is still under pressure by continuing to slice lower to $1941 per ounce as U.S treasury yield edged higher and dollar index is pushing higher again this week which is weighing heavily on gold price currently. U.S. Dollar Index DXY, -0.18%, a gauge of the dollar’s strength against a basket of rivals, increased by 0.5% to 102.085 on Tuesday.

Meanwhile, the U.S manufacturing sector indicated the contraction for nine consecutive months in July. The Institution for supply management’s manufacturing survey, released the business condition of American factories at 46.4% in July from the previous 46% with the expectation of 46.9%. The index above 50.0% indicates industry expansion, below indicates contraction

Job openings in the U.S dropped to 9.58 million in June, according to the Bureau of Labor Statistics reported on Tuesday. However, the economist and market are marked that the number suggests the demand for workers is still strong.

This week, the market is looking ahead to Friday data when the next U.S non-farm payrolls is due out from the Department of Labor. Market expect data to show 203K new jobs were created from 209K in June.

Own opinion, with above fundamentals including the sentiment that the FED is done raising interest rates after weak inflation data in recent week, Gold price could define the ability of bulls of $1965 per ounce if it could find a strong support again at $1940.

Technically, by using Fibonacci retracement from the low of $1893 and the high of $1987, gold price may have open interest long in the range of $1923-$1940 as the range of retracement of 50 and 32.8 level.