The price of spot gold exhibited a weaker bias during the early European trading session on Wednesday, July 15th, currently hovering around $4,035 per ounce.
On Tuesday, gold experienced a significant surge of approximately 1.50%, driven by softer-than-anticipated U.S. consumer inflation data, which alleviated pressure on the Federal Reserve to tighten monetary policy in 2026. Spot gold rebounded after touching an intraday low of $3,983 per ounce.
The U.S. Consumer Price Index (CPI) for June came in below expectations, with the year-on-year increase slowing to 3.5% from 4.2%, falling short of the previously forecasted 3.8%. Following the release of the CPI data, traders scaled back bets on a potential Federal Reserve interest rate hike at its July 28-29 meeting.
From a daily chart perspective, the overall trend for gold remains bearish. The price is still being suppressed by short-term moving averages, which is capping any rebound attempts. Momentum indicators, such as the Relative Strength Index (RSI), suggest there is further room for downside movement.
The 4-hour chart indicates that as the price approaches a previous area of consolidation, technical resistance is present around $4,085. Concurrently, other technical indicators continue to signal weakness, leading to the expectation that the market will maintain a consolidating-to-bearish bias in the short term.
Overall, the trading recommendation for gold this evening is to look for selling opportunities on any price rebounds.
Trading Strategy for Gold:
Short Position Strategy: Consider selling in the range of $4,041 to $4,043, with a stop-loss set at $4,065, targeting a move to around $3,992.
Long Position Strategy: Consider buying in the range of $3,990 to $3,992, with a stop-loss set at $3,978, targeting a move to around $4,015.
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