Market Analysis

Gold price (XAU/USD) gains traction on Monday due to a softer Greenback. Markets are still digesting the Federal Open Market Committee's (FOMC) dovish hold and a weaker US employment report. Meanwhile, US Treasury bond yields and the US Dollar (USD) are expected to remain under pressure, benefiting the yellow metal. Additionally, rising geopolitical tensions in the Middle East might continue to support traditional safe-haven assets like Gold.

Looking ahead, Gold traders will monitor the US ISM Services Purchasing Managers Index (PMI) on Monday for new catalysts. The Services PMI is expected to improve to 51.0 in July from 48.8 in June. Stronger-than-expected data could lift USD prices and limit the precious metal's upside.

Technical Analysis: Gold price maintains a bullish outlook in the longer term
Gold price remains strong today. The yellow metal keeps a positive outlook on the daily timeframe, holding above the key 100-day Exponential Moving Average (EMA), with the bullish 14-day Relative Strength Index (RSI) around 58.0.

Gold has traded within an ascending trend channel since mid-April. The first upside target is near $2,450 (high of May 20) and could reach $2,483 (all-time high on July 17). Bullish candlesticks above this level could drive XAU/USD toward the upper boundary of the trend channel at $2,515.

On the downside, the initial support level for Gold is at $2,355 (low of July 26). Further declines could bring the price down to $2,335, the lower limit of the trend channel. Sustained trading below this level could lead to $2,319 (100-day EMA).

Paraphrasing text from "FX Street" all rights reserved by the original author.