Gold Price Futures (GC) Technical Analysis — Demand for Non-Yielding Gold Weighed Down by Rising Yields

Gold futures are sliding lower just after the session's midpoint on Monday, as a rise in Treasury rates weighs on gold demand. Traders were also keeping an eye on the European Central Bank's meeting in Portugal for policy indicators. Traders are particularly interested in the magnitude of the anticipated September rate rise.

At 17:43 GMT, the Comex gold price for August decreased $6.60, or 0.36 percent, to $1823.70. At $169.90, the SPDR Gold Shares ETF (GLD) is down $0.19, or -0.11 percent.

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Yields on U.S. Treasuries were higher to begin the week as market participants evaluated the likelihood of central banks enacting more interest rate rises to combat growing inflation.

Moreover, investors are keeping an eye out for any indications of potential policy shifts when central bank leaders, such as ECB President Christine Lagarde and Fed Chair Jerome Powell, attend the annual Sintra event.

In other news, dealers rejected reports that the United Kingdom, the United States, Japan, and Canada planned to restrict Russian gold imports.

According to the daily swing chart, the primary trend is to the downside. A transaction over $1806,10 will indicate a continuation of the downturn. A rise over $1861.50 will result in a transition to an upward trend.

Even the modest tendency is downward. A move over $1850.30 will reverse the modest trend downwards. This will result in an upward momentum change. A break below the minor support level at $1817.77 will indicate a return of the decline.

Currently, the market is trading below numerous retracement zone levels, making them resistance. The closest Fibonacci level is 1826.60 dollars. The 50 percent mark is then reached at $1837.30. The significant obstacle is the $1844.00 long-term Fibonacci level.

Monday's closing direction of the August gold futures contract on the Comex will likely be determined by traders' reaction to $1826.60.

Bearish Prediction

Monday's direction of the August gold futures contract on the Comex is expected to be determined by a persistent fall below the $1826.60 short-term Fibonacci level. If this generates sufficient downward momentum, then watch for a break below the minor support level at $1817.77. This is a probable trigger for an acceleration towards the primary bottom at $1806.10

Positive Scenario

A sustained rise over $1826.60 will signal buyers are present. If this generates sufficient positive momentum, watch for a sluggish advance with possible goals of $1837.30 and $1844.00.