On Friday morning (July 19th) in the Asian market, spot gold plummeted nearly $20 to around $2426.14 per ounce in the short term, and is currently trading at around $241.79 per ounce.

COMEX's most active gold futures contract saw an instant trading volume of 636 lots within one minute from 08:03 to 08:04 Beijing time on July 19th, with a total trading contract value of 155 million US dollars.

COMEX's most active gold futures contract saw an instant trading volume of 690 lots within one minute on July 19th at 08:04-08:05 Beijing time, with a total trading contract value of 168 million US dollars.

Affected by the rise in US dollar and US Treasury yields, gold prices have experienced a correction on Thursday.

Spot gold closed down $13.57, or 0.55%, at $2444.97 per ounce on Thursday.

The US dollar index rose 0.44% on Thursday, closing at 104.18; The yield on 10-year US treasury bond bonds rose 2.5 basis points to 4.187%.

FXStreet analyst Christian Borjon Valencia pointed out that gold prices had previously reached a historic high of $2483 per ounce, but buyers were unable to hold on to the upward trend due to investors taking profits.

How to trade gold?

Valencia stated that gold prices are experiencing a pullback, implying that traders are making profits after rising more than 8% in the past three weeks. The medium-term momentum remains bullish, but the Relative Strength Index (RSI) is declining, indicating that buyers are breathing in before pushing gold higher.

Valencia pointed out that in the short term, as gold prices decline and the daily closing price falls below $2450 per ounce, this paves the way for gold prices to challenge $2400 per ounce.

If the gold price falls below $2400 per ounce, it may push the gold price further down to the July 5th high of $2392 per ounce, followed by the psychological barrier of $2350 per ounce.

Valencia added that on the other hand, if the gold price breaks through $2490 per ounce, it will pave the way for the gold price to reach a new historical high of $2500 per ounce.