On Friday, July 24, during the Asian morning session, spot gold prices extended their decline following a sharp sell-off in the previous trading day, with the metal currently trading near $4,043 per ounce. Spot gold prices plummeted nearly 2% on Thursday, weakening from a two-week high set a day earlier. This move was driven by the Middle East conflict, which has pushed energy prices higher and stoked inflation concerns, strengthening expectations for interest rate hikes and weighing on the non-yielding precious metal.
U.S. President Donald Trump on Thursday threatened "major military punishment" against the Houthis, reducing the likelihood of a resolution to the conflict. Later on Thursday, Trump announced he was considering launching "massive" strikes of an "unprecedented scale," further boosting demand for the U.S. dollar.
On the daily chart, gold maintains a bearish bias, trading below key moving averages. Momentum appears weak, with the 14-period momentum oscillator in negative territory and the RSI hovering near 45, suggesting that downside pressure persists rather than signaling a decisive rebound. On the 4-hour chart, the 100-period simple moving average (SMA at $4,079.33), the 20-period SMA ($4,081.89), and the 200-period SMA ($4,117.30) are all positioned above the current price, forming a layered resistance band that caps any recovery attempts. The Relative Strength Index (RSI) is hovering near 44, while the momentum indicator is flat around the midline. Overall, the technical outlook suggests a strategy of selling on rallies for gold.
Gold Trading Strategy:
Short Position Strategy: Enter short near $4,053-$4,055, with a stop-loss at $4,071, targeting around $4,001.
Long Position Strategy: Enter long near $4,001-$3,999, with a stop-loss at $3,979, targeting around $4,038.
The content above is for reference only and does not constitute investment advice. Investors who act on this information do so at their own risk.
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