Gold Price Consolidating Gains After Hitting New All-Time High

Key Highlights

  • Gold price rallied towards $2,000, but it struggled to clear $1,980.
  • A new all-time high is formed near $1,981 and the price is currently consolidating gains.
  • The US GDP is likely to contract 34.1% in Q2 2020 (Preliminary).
  • The US Initial Jobless Claims in the week ending July 25, 2020 could increase from 1,416K to 1,450K.

 

Gold Price Technical Analysis

In the past few days, gold price followed a strong bullish path above $1,900 against the US Dollar. The price even broke the $1,950 resistance area and traded to a new all-time high before consolidating gains.

The 4-hours chart of XAU/USD indicates that the price surged towards the $2,000 level, but it seems to be facing hurdles near $1,980. A new all-time high is formed near $1,981, and the price is now well above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

The bulls made two attempts to clear the $1,980 resistance recently, but they failed. The price is currently consolidating gains and it seems like it could make another attempt.

If the bulls succeed, the price could rally towards the $2,000 level. On the downside, there are many important supports, starting with $1,960. There is also a significant bullish trend line forming with support at $1,955 on the same chart.

Any further losses may push gold price towards the $1,925 support zone. The next major support is seen near the $1,900 breakout zone.

Overall, gold price is facing hurdles near $1,980 and it might correct lower. Looking at EUR/USD, the pair extended its rally above the 1.1800 level. GBP/USD also climbed higher and it even surpassed 1.3000.

Economic Releases to Watch Today

  • German GDP for Q2 2020 (YoY) (Preliminary) – Forecast -10.9%, versus -1.9% previous.
  • German GDP for Q2 2020 (QoQ) (Preliminary) – Forecast -9%, versus -2.2% previous.
  • Euro Zone Consumer Confidence July 2020 – Forecast -15, versus -15 previous.
  • German CPI for March 2020 (YoY) (Preliminary) – Forecast +0.2%, versus +0.9% previous.
  • German CPI for March 2020 (MoM) (Preliminary) – Forecast -0.2%, versus +0.6% previous.
  • US Initial Jobless Claims - Forecast 1,450K, versus 1,416K previous.
  • US Gross Domestic Product Q2 2020 (Preliminary) – Forecast -34.1% versus previous -5%.