Technical analysis: Gold is in a range-bound fluctuation and is testing the upper edge of the range
2025-07-12 01:51:11
Gold has been trading in a narrow range for the past 12 weeks, and the boundaries of the range are gradually narrowing. The 50-day moving average has once again provided support. At the same time, the main driver of the rise in gold prices is the recovery in risk appetite, which has pushed down the yields of long-term government bonds, which are gold's main competitor.
However, investors also need to be cautious about the strengthening trend of the US dollar, which puts bearish pressure on precious metal prices.
The minutes of the Federal Open Market Committee (FOMC) meeting in June were positive for precious metals. Two officials are ready to vote in favor of loose monetary policy as early as July. Dovish officials focused on the cooling of the labor market and the slowdown in inflation.
(Source of spot gold daily chart: Yihuitong)
The probability of gold breaking out of the $3,250-3,450 trading range is low. High demand from central banks and high uncertainty provide support for gold prices. Nevertheless, the rapid rise of precious metals in 2022-2025 indicates that it is already overbought.
If the gold price can stabilize in the $3,370-3,400 range in the new week, it will be an important signal of a bullish breakout, which is expected to push the price to a record high quickly. However, this scenario is not inevitable. If the gold price remains in the $3,300-3,350 range, it means further consolidation and the risk of breaking below the range will increase.
However, investors also need to be cautious about the strengthening trend of the US dollar, which puts bearish pressure on precious metal prices.
The minutes of the Federal Open Market Committee (FOMC) meeting in June were positive for precious metals. Two officials are ready to vote in favor of loose monetary policy as early as July. Dovish officials focused on the cooling of the labor market and the slowdown in inflation.
(Source of spot gold daily chart: Yihuitong)
The probability of gold breaking out of the $3,250-3,450 trading range is low. High demand from central banks and high uncertainty provide support for gold prices. Nevertheless, the rapid rise of precious metals in 2022-2025 indicates that it is already overbought.
If the gold price can stabilize in the $3,370-3,400 range in the new week, it will be an important signal of a bullish breakout, which is expected to push the price to a record high quickly. However, this scenario is not inevitable. If the gold price remains in the $3,300-3,350 range, it means further consolidation and the risk of breaking below the range will increase.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
