For the third time, gold failed to get closer to the local high at around $1,435. The price already touched it 2 times in late June and early July. Local high of the end of last week was at $1427/oz. After that, the metal moved into a fairly narrow zone of consolidation, with a local support at the $1410 level, and resistance at just above $1416. If the price drops to $1405, it will get back to the line of the medium-term uptrend. This is the level one can think of going long from, which is indirectly confirmed by the DXY index. Its 0.4% increase was not followed by any movements on the XAUUSD chart.
The fundamental background for risky assets is mixed. On Monday, China reported its economic growth, which was minimal over the past 27 years, but its industrial production and retail sales in June showed really good results. This was enough to give traders hope for the stabilization of the world’s second economy.
Gold is supported by market confidence that the US interest rate will be cut later this month. According to most analysts, the interest rate will be reduced by Fed for the first time in a decade, thus reducing the price of the metal.