Gold Price Analysis: XAU/USD erases gains, drops to $1875 in a volatile session
|- Gold fails again near $1900 and reverses, erasing daily gains.
- XAU/USD without a clear bias as the rebound from $1855 losses strength.
Gold is falling modestly on Monday, on a wild trading day. XAU/USD approached again during the American session the $1900 area but after reaching $1896 turned to the downside, and fell to $1875. As of writing, it trades at $1878, near the same level it closed on Thursday.
The decline took place as Wall Street indexes moved off highs and amid a rebound of the US dollar. The DXY approached daily highs, and it was capped again at 90.30. The Dow Jones is up by 0.65%, and the Nasdaq gains 0.90%. Both hit record highs levels.
Volatile price action suggests some indention ahead for gold. Price is testing the $1975 support, and a consolidation below would expose the daily low at $1869 (also Thursday’s low). Lower levels would turn the attention to the key barrier of $1850/55.
If XAU/USD posts a daily close above $1900, it would give a strong bullish sign. It would be above a critical horizontal, a psychological area and above the 100-day moving average.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.