Gold Price Analysis: XAU/USD fails to break $1850 and turns to the downside
|- XAU/USD losses momentum near $1850 and falls hitting fresh daily lows.
- The metal is about to end a three-day positive streak, after rising more than $80 from the weekly bottom.
Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.
It was a volatile week for gold. From the Monday low at $1763 rose more than $80. As of writing, it is up 4% for the week. The sharp rebound mitigated the bearish pressure.
The recovery in gold was capped by the strong $1845/50 area that is a critical resistance. A break higher should lead to further gains. So far, every approximation was followed by a limited correction lower. The positive momentum will likely continue to hold while price remains above $1800. A slide below would expose the next support at $1775 and the recent low of $1764.
Gold is about to end the week higher, after losing almost $200 over the previous three weeks. The move to the upside started with a technical correction and amid profit-taking. More recently, it was the dollar’s weakness that supported the move higher.
Technical levels
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