Gold had looked positioned for rising pricing for quite some time, although not making much progress, but that view was just shattered at the June Fed meeting. The 6% drop in one week in June was the biggest five-day drop since the March 2020 market panic. From May 2019, there is a slope that could become essential in the future period. If this fails to keep the price afloat, XAU/USD may be hunting for support around the 1675 level. This was used as resistance around the time Covid entered the market and then as support not long after. In March, it also installed a floor on two occasions. Stabilizing around one of the aforementioned zones of support will be a good start for gold in terms of maintaining its longer-term trend, but there is still a lot of work to be done before it can go on another bull market run. Another possibility is that horizontal support and the trendline off the summer 2020 high keep prices contained and creeping towards the triangle pattern’s apex. This will most likely take some time to develop, but it’s something to keep in mind as we head into the second half of the year. The technical picture for the next quarter does not appear to offer any clear signals, so we may need to wait before creating a clearer intermediate-term trading inclination. TradingView is the source of this information. Download our new 3Q trading guide from the DailyFX Free Trading Guides to see the full Gold forecast, including the fundamental view!/n
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