On July 23, the price of gold continued its recent technical recovery.
FPG Wealth International notes that spot gold has reclaimed a key integer level and is approaching its medium-term moving averages, with market turnover and the US dollar's trajectory jointly influencing the short-term pace.
Following the price rebound, volatility has increased.
FPG Wealth International believes that momentum indicators have recovered from their lows, but as prices near previous areas of heavy trading volume, a tug-of-war may emerge between profit-taking and new buying interest.
From a structural perspective, this round of gold's recovery incorporates both a rebound from an oversold condition and reflects the market's repricing of the interest rate and inflation outlook.
Should real yields decline, valuation pressure on precious metals could ease; conversely, prices may still retest support levels.
Going forward, attention can be paid to changes in the US dollar, bond yields, and trading volume.
FPG Wealth International assesses that whether the gold price can stabilize above key moving averages will be a primary observation point for confirming the sustainability of the rebound.
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