XAU/USD Weekly Trade Levels: Gold Technical Price Outlook Updated technical trade levels for gold – Weekly Chart XAU/USD bounces off uptrend support for third week in a row, signaling a correction? Are you new to the gold market? Get started with this free Beginner’s Guide to Gold Trading.


Gold prices rose for the third week in a row, with the XAU/USD pair up more than 0.8 percent at Friday’s close. Gold has now risen about 3.9 percent from its June low, and while a bounce off uptrend support maintains the medium-term view positive, we are watching for tiredness on a push higher in the coming weeks. On the XAU/USD weekly technical chart, these are the latest objectives and invalidation levels that matter. Check out my most recent Weekly Strategy Webinar for a more in-depth look at this gold technical setup and other topics. Weekly Gold Price Chart – XAU/USD Technical Strategist Michael Boutros prepared this report; Gold on Tradingview Notes: We mentioned in last month’s Gold Weekly PriceOutlook that XAU/USD had sunk to “important uptrend support targets into the June close – we’re on the alert for an exhaustion bottom heading into July.” With gold surging more than 3.8 percent into the monthly open, that week ended up being the low. Is there a low in place at this point in the uptrend? The bulls aren’t out of the woods yet; as noted in this week’s Gold Price Outlook, the daily wave-pattern shows that this rally is corrective in nature. If that’s the case, a retreat here might yet lead to a stronger rebound. Weekly support is located at the sliding parallel extending from the yearly lows / March high at 1755, while weekly resistance is located at the confluence of the 2021 high-week close, the 61.8 percent Fibonacci retracement of the June decline, and the 52-week moving average at 1849/53- look for topside exhaustion ahead of this threshold IF price is still heading lower. A break / close below pitchfork support would likely exacerbate selling, exposing the yearly low-week close at 1729 and critical support at the confluence of the 38.2 percent retracement of the late-2015 advance and the 61.8 percent extension of the 2020 decline at 1670/82- an area of interest for possible downside exhaustion IF reached. In conclusion: Gold has now recovered 38.2 percent of its June loss after a three-week rally off uptrend support, and while the latest rally may soften in the days ahead, we’re keeping an eye on a probable exhaustion high later in the month. If this recent bounce is genuinely corrective, the rebound should be stopped around 1853- look for a response there for direction, with a closure below 1755 needed to mark the return of the June fall. For a closer look at the near-term XAU/USD technical trade levels, see my most recent Gold Price Outlook. Review Michael’s Foundations of Technical Analysis series on Building a Trading Method for a detailed description of his trading strategy. XAU/USD Price Chart – Gold Trader Sentiment IG Client Sentiment data suggests that traders are net-long. The ratio for gold is +6.02 (85.75 percent of traders are long), which is a bearish reading. Long positions are up 2.05 percent from yesterday and down 0.94 percent from last week. Short positions are down 14.15 percent from yesterday and down 9.98 percent from last week. We tend to be contrarians when it comes to crowd sentiment, and the fact that traders are net-long on gold signals that prices will continue to decline. From a mood aspect, traders are more net-long today than they were yesterday and last week, and the combination of current posture and previous movements gives us a greater Gold-bearish contrarian trading bias. —- Previous Weekly Technical Charts- by Michael Boutros, DailyFX Currency Strategist Michael can be found on Twitter as @MBForex./nRead More