Gold Price Analysis: XAU/USD shows resilience and rebounds to fresh daily highs despite dollar’s strength
|- Wall Street tumbles, dollar extends recovery and crude oil collapses.
- XAU/USD rebounds from one-week lows and prints daily highs.
Gold prices turned positive during the American session after making a sharp intraday reversal. XAU/USD dropped earlier on Tuesday to $1,906/oz, reaching the lowest level since August 26. Over the last three hours, it rose more than $30, climbing back above $1,930. As of writing, it is trading at daily highs around $1,934.
From a technical perspective, some bearish pressure is still seen in gold as it continues to make lower lows but it remains above the $1,900/10 critical support. A break lower would suggest more losses ahead, targeting the August low at $1,860.
On the upside, above the $1,935 zone, the next resistance stands at $1,945. It XAU/USD rises further it would remove the bearish short-term term bias suggesting it could continue toward the next resistance at $1,950.
On Tuesday, Wall Street is falling sharply again, and also crude oil prices. The US dollar pulled back but is still mostly higher across the board. Despite the recovery of the greenback, gold holds relatively well, not far from where it traded six days ago: during the same period of time, the DXY rose from two –year lows at 91.70 to 93.30.
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