Gold Price Forecast: Focus on monthly close

as mentioned in Gold price risks a long-term bearish revival, having breached a 2.5-year long rising trendline earlier this month. As a result, the daily chart was flashing a bullish relative strength index (RSI) and stochastic divergence on Monday, still, the corrective rally has remained elusive. More importantly, the metal charted a bearish outside-day candle yesterday, signaling a resumption of the sell-off from the April highs above $1,360. To cut the long story short, the bears are in control and hence, the metal looks set for a long-term bearish breakdown, as seen in the chart below. The latter case is more likely if the Chinese Yuan shows signs of life on Monday.

Gold Price Forecast: Yellow metal could regain some poise

Gold could see a corrective rally next week as CNY sell-off has stalled. The technical charts are also calling a temporary relief rally in gold prices. The gold price has recovered 1.5 percent from the one-year low of $1,211, boosting the odds of a strong corrective rally, technical charts indicate. A stronger rally to $1,265 (July 9 high) could be on the cards if the metal crosses the wedge resistance with strength (falling wedge breakout). Bull ScenarioThe metal may rise sharply above $1,265 if the US-China trade war turns into a full-blown currency war.

Gold Price Forecast: Subdued Rebound Keeps Bearish Trend Intact

As it stated in Gold Price Forecast: Subdued Rebound Keeps Bearish Trend IntactGold prices are back under pressure, with the U.S. dollar gaining ground against its major counterparts, and the precious metal may continue to consolidate over the remainder of the week as market attention turns to the Federal Open Market Committee (FOMC) interest rate decision on August 1. The ongoing skew in retail positioning offers a contrarian view to crowd sentiment, with the broader outlook for gold still tilted to the downside both price and the RSI continue to track the bearish trends from earlier this year. For more in-depth analysis, check out the Q3 Forecast for GoldInterested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups! Review the 'Traits of a Successful Trader' series on how to effectively use leverage along with other best practices that any trader can follow.

collected by :kiven Dixter