✅ Gold Market Weekly Summary
Gold prices experienced significant volatility this week and ultimately closed lower on the weekly chart, failing to hold above the key $3400 level. Although the price briefly achieved a bullish breakout earlier in the week, the rally lacked follow-through, indicating weak bullish momentum and growing market indecision from a technical perspective.
✅ Detailed Review
Gold surged by 2.4% in the first two trading days of the week, but gave back nearly 3% over the last three sessions. The reversal was primarily driven by renewed optimism surrounding trade negotiations led by former President Trump, which boosted risk appetite and dampened safe-haven demand for gold.
✅ Outlook for Next Week
Investors will closely monitor the Federal Reserve’s policy meeting scheduled for July 29-30. Market expectations suggest an extremely low probability of a rate cut during this meeting, with the likelihood of holding rates steady in September rising to approximately 40%, up sharply from around 10% a month ago.
✅ If Fed Chair Jerome Powell highlights progress in trade agreements as a reduction in economic uncertainty — thereby leaving the door open for a September rate cut — U.S. Treasury yields may fall sharply, potentially boosting gold prices. Conversely, if Powell cites rising inflation data and avoids signaling any easing at the next meeting, gold may come under renewed pressure.
✅ Technical Analysis
Gold suffered a sharp decline on Friday, breaking below the key 4-hour trendline support at the $3335 level, which we previously identified. This triggered renewed bearish momentum, and the current price action reflects a clear downtrend. Unless a firm bottom is established, the bearish trend is likely to continue.
✅ Hourly Chart Structure
Volatility between bulls and bears was apparent this week. The price followed an ascending channel during the first half of the week but reversed sharply in the latter half, erasing gains and forming a new descending channel. The $3350 level now acts as a critical pivot point and will serve as the key resistance level for bearish strategies next week.
✅ Conclusion
Given that both the 4-hour and daily charts have broken major support levels, the outlook has shifted from a mildly bullish consolidation to a trend-following bearish stance.
✅ Trading Strategy Reference:
🔰 Entry: Consider initiating short positions around the $3350 level
⛔ Stop-Loss: Place stops above $3360
🔰 Targets: Initial target at $3325; if broken, look for further downside toward the $3310 area
🔥Trading Reminder: Trading strategies are time-sensitive, and market conditions can change rapidly. Please adjust your trading plan based on real-time market conditions. If you have any questions or need one-on-one guidance, feel free to contact me🤝
