How to trade gold Today? Valencia pointed out that although the price action in the past few days shows that traders are reluctant to position ahead of the release of US PCE inflation data, the upward bias of gold prices remains. From a momentum perspective, the relative strength index (RSI) failed to break through the previous peak, moving in the opposite direction of gold prices, which means that a negative divergence may be coming. Valencia said that if gold prices fall below this week's low of $2,503/oz and $2,500/oz, it will pave the way for a deeper correction. The next support level will be the July 17 high of $2,483/oz, followed by the psychological level of $2,450/oz. If gold moves further lower, support is expected to be at the 50-day simple moving average (SMA) of $2,410/oz, followed by $2,400/oz. On the other hand, Valencia added that if gold prices break through the all-time high of $2,531/oz, they could rise to $2,550/oz before challenging $2,600/oz. This content is general market commentary only and is not investment advice