Precious metals are under some downward pressure from key markets, particularly from the rising USD. As of 1:00 AM on July 30, the US Dollar Index, which measures the greenback's volatility against six major currencies, stood at 104.302 points (up 0.24%).
Meanwhile, Nymex crude oil prices hit a six-week low and are trading around $75.50 per barrel. The 10-year US Treasury yield is currently around 4.16%.
Overall, the market is cautious ahead of the release of significant US economic data in the coming days.
Additionally, reports from Asia indicate that consumer demand for gold jewelry has recently declined due to high retail prices and concerns about China's economic growth.
Although gold's upward momentum is starting to weaken as prices stabilize below $2,400 per ounce, an expert believes now is a good time to buy.
In a recent interview with Kitco News, Carley Garner, co-founder of brokerage firm DeCarley Trading, said that although gold prices have fallen from the recent record high of $2,480 per ounce, the market is still in a strong uptrend, and investors should view this decline as a buying opportunity.
“Typically, gold sees a significant sell-off in the summer, mostly in late July or early August. But once that sell-off ends, gold could see a good price increase,” she said.
Even if the market may decline, Garner said she is targeting $2,650 per ounce by the end of the year. Looking at the long-term trend, Garner said she is watching the key support level of $2,300 per ounce. According to this expert, $2,300 per ounce is crucial for gold to hold before finding a new price increase.
August gold last fell $5.6 to $2,375 per ounce. September silver fell $0.295 to $27.71 and hit a 2.5-month low.
Technically, August gold has a general short-term technical advantage. The next upside price target is to close above resistance at $2,433 per ounce.
Other notable events that could impact gold prices this week include the Conference Board's consumer confidence survey for July released on Tuesday; the Bank of Japan's interest rate decision and ADP employment data on Wednesday; along with the Bank of England's interest rate announcement, weekly jobless claims, and the US ISM manufacturing PMI on Thursday...
