Gold Steadies After Tuesday’s Plunge & 2022 Lows
XAU/USD Analysis
The commodity kicked off the third quarter in a very bad fashion, since it runs its fourth consecutive negative week and month, having slumped to the lowest levels of the year.
The move came after fears of recession sparked risk aversion and investors overwhelmingly preferred the safety of the US Dollar and gave gold the cold shoulder.
The technical outlook had already been tough for XAU/USD, which is now in risk of breaching 1,752, but bears may not be ready yet to challenge 1,721.
The Relative Strength Index hit the most oversold levels since late-April and this could lend support in the near-term. As such, a bounce back above 1,780-4 could be in the cards, but a strong catalyst will be required for further recovery towards mid-1,810.
However, the RSI oversold levels in April had not prevented further new lows and XAU/USD is in difficult spot, while the region above mid-1,800 is definitely unfriendly.
Markets now turn to a busy economic calendar, which features US PMIs and the minutes form the Fed's June policy meeting, when it had raised rates by a historic 0.75%.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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