Gold Rebounds, Trend Remains Fragile
Gold prices rose slightly in European trading on Monday (July 20th), after the US dollar's recovery began to stall and oil prices fell from their highs. This situation provides room for gold prices to attempt a recovery, although the upward momentum remains limited.
Technically, gold remains stuck below the descending trendline resistance. This means that selling pressure is still visible every time the price tries to rise to this resistance area.
However, the downward pressure on gold is not yet too strong, as the price is still able to hold above the support area of US$3,965 per troy ounce. This movement forms a descending triangle pattern, indicating that the market is waiting for a major trigger to determine its next direction.
From a fundamental perspective, tensions in the Middle East remain the main factor limiting gold's movement. However, a statement from the Iranian Foreign Ministry stating that de-escalation efforts are still underway offers some hope that the conflict may subside.
These diplomatic signals have helped push oil prices down from their one-month high and slightly improved market risk appetite. The weakening oil price is also positive news for gold, as it can alleviate concerns about energy inflation that previously weighed on the precious metal's prospects. As a result, gold is still likely to move sideways with a cautious bias. If the price can decisively break through the trendline resistance, a rebound could be possible. However, if the support level of US$3,965 is breached, selling pressure could push gold back to lower levels. (arl)
Source: Newsmaker.id
