XAU Gold – Expectations of a US rate cut weakened, putting gold under pressure but still holding technical support.

Gold prices fell again on Wednesday as the Federal Reserve held interest rates steady and offered little indication of when a rate cut might occur. Strong U.S. economic data further dampened gold's appeal. The ADP National Employment Report showed that U.S. private sector jobs increased more than expected in July. Furthermore, the Fed's decision to hold interest rates steady was divisive, offering little indication of when borrowing costs might be lowered, and drew dissent from two Fed governors. Fed Chairman Powell stated that the Fed has not yet made any decisions regarding September, a time when many market participants had expected the first rate cut of the year.

Gold prices fell below the $3,300, dropping to $3,268, barely holding above its 100-day moving average. Following Thursday's early trading rebound, the RSI and Stochastics indicators have also risen from oversold territory, suggesting a potential short-term stabilization in gold prices. It's worth noting that gold prices last bottomed at $3247 on June 30th, after which they repeatedly rallied to a high of $3381 last Wednesday. This means that gold currently faces two key support levels: the 100-day moving average at $3266 and $3247. If these levels are breached, gold is likely to enter a period of significant correction. Extended support is expected to be $3242 and $3232, and further to $3222 and $3189. However, after a week-long correction of over $100, the price is expected to stabilize slightly in the short term. The resistance levels are estimated at $3296 and $3306, with the next levels being the 25-day moving average at $3335 and $3353.

London Gold July 31st
Early Forecast Range: 3265 – 3288
Resistance: 3296 – 3306 – 3330/3353
Support: 3242 – 3232 – 3222/3189

SPDR Gold Trust Gold Holdings:
July 21st – 947.06 tons
July 22nd – 954.80 tons
July 23rd – 954.80 tons
July 24th – 957.09 tons
July 25th – 957.09 tons
July 28th – 956.23 tons
July 29th – 956.23 tons
July 30th – 955.37 tons

30/7 AM London Gold Fix: $3331.7 
30/7 PM London Gold Fix: $3304.3 

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