Gold prices continued to fall during the U.S. trading session on Thursday (July 18), with better-than-expected U.S. retail sales data further pressuring gold prices. The data reinforced the Federal Reserve's stance of keeping interest rates unchanged until inflation signals become clearer.



The bears once again tested below the bottom of the recent range ($3,320 area) and approached the key support level of $3,308 (top of the rising cloud on the daily chart), but this level provided strong support, pushing gold prices to rebound.

Gold is currently facing two strong opposing forces: the Federal Reserve's "standstill" policy maintains high interest rates, pushing up the dollar; while the increasing uncertainty in tariffs, economic and geopolitical situations continues to boost demand for safe-haven assets.

Gold prices have been moving sideways in the past few days, indicating that the two forces are in balance and traders are waiting for clearer directional signals.

Although the short-term market is still in the consolidation stage below the record high ($3,500), the bullish trend in the long term remains unchanged.


(Source of spot gold daily chart: Yihuitong)

In the short term, the gold price is still fluctuating in the $3377-3320 range (today's decline below $3320 may be short-lived). Breaking through any range boundary will release an initial directional signal.

Daily technical indicators are still bullish (momentum indicators are positive/daily cloud continues to provide support), reinforcing the optimistic outlook - the market generally believes that the current extended consolidation is just a rest before the bulls re-strike.

Solid support in the $3,320-3,300 area should limit the downside and help gold prices re-hit the top of the range ($3,373-3,377); a breakout of this area would open up space for testing the $3,400 (psychological level) and $3,452 (June 16 high) targets.

Resistance levels: $3,377; $3,392; $3,400; $3,452

Support levels: $3,320; $3,308; $3,300; $3,282

At 01:57 Beijing time, spot gold was trading at $3,337.04 an ounce, down 0.31%.