Gold Prices Stable, Here Are Breakout Signals to Watch Out For!
Global gold prices were stable on Monday (July 21st), as market participants awaited developments in US trade policy and decisions by major central banks. Spot gold prices were in the range of $3,352 to $3,358 per troy ounce, with the short-term trend still leaning toward strengthening.
The stability of gold prices was supported by global uncertainty, particularly regarding the delayed US trade negotiations and the potential imposition of new tariffs on partner countries such as the European Union and Mexico. This situation prompted investors to return to gold as a safe haven.
On the other hand, strong US economic data, such as a decline in jobless claims and strengthening consumer spending, pressured gold prices through a strengthening US dollar. However, dovish signals from several Federal Reserve officials provided some room for gold to hold its ground.
"Unabated trade tensions and the prospect of monetary easing from several major central banks keep gold attractive to long-term investors," said an analyst from FXStreet.
Furthermore, gold purchases by central banks, particularly from developing countries like China and India, as well as a surge in inflows into global gold ETFs, reaching US$38 billion in the first half of 2025, have also supported the price of this precious metal.
Technically, gold is currently moving within an ascending triangle pattern with a lower boundary in the $3,335–$3,352 area and critical resistance at $3,365. If the price can break through this upper boundary, the potential for further strengthening towards $3,400 is wide open.
"If the $3,365 level can be broken today, gold has the potential to test the psychological resistance at $3,400 in the next few sessions," explained a technical analyst from FX Empire.
Today's gold price movement is highly dependent on the latest news regarding trade policies and interest rate expectations. Investors are advised to closely monitor US macro data releases and statements from central bank officials to adjust their strategies in the precious metals market.
Source: Newsmaker.id
