Gold has been quite impulsive with the recent bullish momentum which pushed the price above $1,420. Meanwhile, gold is trading inside a corrective range.

Due to the Fed's intention to cut the funds rate, most investors are flocking to gold as a safe haven asset at the current market situation. The IMF recently stated that the US currency is overvalued by 6% to 12% based on near-term economic fundamentals. The dollar index also 0.2%, boosting both bullion and gold futures which trade with the opposite dynamic to the US dollar. A strong employment report from the US this month assured the market to rule out a 50-basis-point cut at the July 30-31 meeting.

Gold's biggest decline this week occurred on Tuesday as a stronger-than-expected reading of US retail sales suggested that the Fed may not hurry to ease monetary policy. Moreover, legendary investor and trader Ray Dalio currently sees gold as a key asset as central banks get more hawkish with monetary policy. Such rhetoric devalues national currencies and is likely to cause a paradigm shift in investing. This was great news for gold bugs, as the price of gold jumped higher in response to Dalio's post. Gold gained 0.7% to trade at near $1,421 an ounce. Analysts expect the gold price to continue a rally in the coming days.

TECHNICAL OVERVIEW:

The price is currently retracing towards the dynamic level of 20 EMA after pushing higher towards $1,430. A retracement along the way is expected to open the door for upward momentum in the making. MACD moving averages are going to have a crossover that also indicates bearish pressure. No Bearish Divergence is detected to confirm any strong bearish move. The price is heading towards $1,440. If it is broken above, then $1,500 will be around the corner. As the price remains above $1,400 with a daily close, the bullish bias is expected to continue.

TECHNICAL LEVELS:

SUPPORT: 1,380, 1,400, 1,410

RESISTANCE: 1,440, 1,450, 1,500

BIAS: Bullish

MOMENTUM: Non-Volatile