Gold prices have been struggling recently, but there seems to be a glimmer of hope as they attempt a fresh increase from the $2,350 support zone. The 4-hour chart of XAU/USD shows that gold found support near the $2,352 level against the US Dollar. The price has formed a base and has started a recovery wave above $2,365. It is currently facing resistance near the $2,400 zone and the 100 Simple Moving Average (red, 4 hours). The next major resistance sits near the $2,420 level, and a clear move above this point could open the doors for more upsides.
On the other hand, oil prices have been experiencing extended losses and have traded below $75.50. The bears in the market have remained active, and they might soon aim for more downsides below the $75.00 support region. This downward trend in oil prices is something to keep an eye on as it could have broader implications for the market.
In addition to developments in the gold and oil markets, the US ADP employment report could change by 150K in July 2024. This data point is crucial as it provides insights into the labor market and can impact overall market sentiment.
From a technical analysis perspective, gold prices have shown resilience by clearing a connecting bearish trend line with resistance at $2,388. However, it is essential to keep an eye on the $2,365 support level as a downside break below this point might call for more downsides. The next major support after $2,365 is near the $2,352 level, and any further losses could send gold prices toward $2,340.
The current state of gold and oil prices is a mix of attempted recovery and extended losses. While gold is showing signs of a possible uptrend, oil is facing pressure from bearish sentiments. The upcoming US ADP employment report could provide further clarity on market direction. Traders and investors should remain cautious and stay informed about these developments to make informed decisions in their trading activities.
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