· Gold Prices Eye Record High, Rising with Stocks as the Dollar Falls
Gold prices continued to push higher, animated by another upswell in risk appetite. The metal tracked higher alongside stocks as the upbeat mood weighed on the haven US Dollar, pushing it downward and stoking demand for anti-fiat alternatives. Crude oil prices behaved in kind, rising in lockstep with the bellwether S&P 500 equities benchmark.
Investors appeared to shrug off building tensions between the US and China after Washington ordered closed the East Asian giant’s consulate in Houston, Texas. That drew statements of outrage from Beijing. Markets were focused elsewhere however, with the newswires variously citing speculation about more US fiscal stimulus, hopes for a Covid-19 vaccine and better-than-expected earnings reports as catalysts.
Looking ahead, sentiment trends seem likely to remain at the forefront. Soundbites from Washington DC – covering both relations with China and fiscal support expansion – as well as the ongoing flow of second-quarter earnings reports may take top billing. Results from key firms including Southwest Airlines, Kimberly-Clark, AT&T, Twitter, American Airlines and Intel are on tap.
· Gold Price Analysis: Next levels to watch as XAU/USD hits $1,880 – Confluence Detector
Gold has been extending its relentless rise, hitting a new near-year high of $1,880.11at the time of writing. Monetary and fiscal stimulus have both been driving the precious metal higher. What are the next levels to watch on XAU/USD?
The Technical Confluences Indicator is showing that the next hurdle for gold is at $1,883, which is where the Pivot Point one-day Resistance 1 hits the price.
It is followed by $1,893, which is where another pivot point is found – the one-day R2.
Further up, the all-time high of $1,921.50 is the next level to watch.
Immediate support i– and a battle line, s at $1,873, which is the confluence of the Simple Moving Average 10-15m and the previous daily high.
Strong support awaits at $1,861, which is a cluster of strong lines including the Fibonacci 38.2% one-day, the SMA 10-4h, the PP one-month R2, and more.
Further down, another cushion awaits at $1,853, which is where the Fibonacci 61.8% one-day and the SMA 50-1h converge.
GOLD TECHNICAL ANALYSIS
Gold prices look set to challenge resistance at 1920.94, the record high set in 2011. This barrier is reinforced by the 78.6% Fibonacci expansionat 1917.59. A daily close above the former level may expose the 100% Fib at 1984.77 next. Alternatively, a move back below the 61.8% mark at 1864.86 looks likely to be followed by a challenge of support at 1827.82, the intersection of the 50% expansion and a rising trend line.
· '$1,900 is certainly in sight': Overvalued equities are buoying gold price – StoneX
Bullish trend in precious metals is pushing gold prices closer and closer to the $1,900 an ounce level with the yellow metal ready to climb towards its all-time highs in Q3, StoneX said in its quarterly outlook.
Gold prices used Q2 to build a solid foundation and are now ready to make further gains, according to StoneX analyst Rhona O’Connell.
Reference: Kitco, FXStreet,DailyFX
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