GOLD Analysis July 2024

Gold (XAUUSD) Market Analysis for July 2024

In July 2024, the gold market experienced heightened volatility due to a combination of economic uncertainties, central bank policies, and geopolitical tensions. After a bullish start to the year, gold’s price movements in July reflected a period of consolidation and reaction to external factors, primarily the actions of the US Federal Reserve, inflation data, and global economic sentiment.

Key Drivers in July 2024:

1. US Federal Reserve Policy: One of the most influential factors driving gold prices was the anticipation of the US Federal Reserve’s monetary policy decisions. With inflation still a concern, markets were closely watching the Fed’s signals regarding interest rates. Although there were no immediate rate hikes in July, the uncertainty around future decisions pushed gold prices into a range-bound movement, as investors sought the safety of gold as a hedge against inflation.
2. Global Economic Uncertainty: Ongoing geopolitical tensions, particularly in Europe and the Middle East, contributed to demand for safe-haven assets like gold. Additionally, slower growth in key global economies, including China and the Eurozone, kept demand for gold elevated, as investors remained cautious about the global economic outlook.
3. US Dollar and Inflation: Gold prices fluctuated with the performance of the US dollar. In July, the dollar strengthened on the back of better-than-expected employment data, which put downward pressure on gold prices. However, rising inflationary pressures and mixed signals from the Federal Reserve helped to maintain some support for gold.

Technical Analysis:

Gold prices in July 2024 hovered between $1,880 and $1,950 per ounce, with a key resistance level forming around $1,950. On the downside, support was consistently found near $1,880, with any dips towards this level being met with buying interest. The market showed signs of consolidation, with investors awaiting clearer signals from central banks.

• Resistance Level: $1,950 (key level to watch for a breakout).
• Support Level: $1,880 (likely to hold unless there is a major economic shock).

Momentum indicators showed a neutral to slightly bullish sentiment, with short-term moving averages suggesting the potential for a break above $1,950 if economic conditions deteriorated or inflation remained elevated.