Gold's Summer Slump? Market Experts See Sideways Trading Before Potential Upswing

9 July 2024

The gold market is currently experiencing choppy behavior, trading within a large consolidation area. Despite initial gains on Tuesday, the market showed signs of hesitation. Analysts expect continued fluctuations as the market seeks to find value, with potential for further short-term drops. However, long-term bullish factors remain, including central bank purchases, potential global interest rate cuts, and ongoing geopolitical concerns. Technical analysis indicates support levels at the 50-day EMA near $2,320 and a major support at $2,300, with further support at the 200-day EMA around $2,200. Given these factors, the overall outlook for gold remains positive, although the market may continue to move sideways in the near term, particularly during the summer months.

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