Gold Price Analysis: $1,730 has emerged as stiff resistance in last 24 hours

  • Gold’s bounce from week lows near $1,700 looks to have stalled. 
  • A strong break above $1,730 is needed to restore the uptrend.

Gold’s recovery from the June 15 low of $1,704 looks to have stalled near $1,730.

The bulls have repeatedly failed to keep gains above that level in the past 24 hours. The immediate bullish outlook, therefore, stands neutralized.

The yellow metal needs to establish a strong foothold above $1,730. That will likely invite stronger buying pressure, leading to a re-test of the recent high of $1,744.

Alternatively, acceptance below $1,716 (Tuesday’s low) would validate the buyer exhaustion near $1,730 and open the doors for a drop to the psychological support of $1,700.

The hourly chart MACD histogram is printing negative values, a sign the momentum has turned bearish. Hence, a drop to $1,716 looks likely. At press time, gold is trading largely unchanged on the day at $1,726 per ounce.

Hourly chart

Trend: Bearish

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