Gold Price Analysis: XAU/USD stays dangerously close to key support area near $1,850
|- Gold turned south during the American trading hours on Monday.
- A daily close below $1,850 could open the door for additional losses.
- Key resistance for XAU/USD is located near $1,870.
The XAU/USD pair started the new week in a quiet manner and moved sideways in a relatively tight range in the Asian trading hours. Although the pair gained traction and rose to a daily high of $1,868 during the European session, it reversed its course and dropped all the way to $1,847. As of writing, XAU/USD was posting small daily losses at $1,854.
XAU/USD technical outlook
On the daily chart, the 200-day SMA is currently located a little below $1,850 and forms strong technical support in that area. The next short-term support could be seen at $1,845 (Fibonacci 61.8% retracement of the December rally). With a daily close below $1,845, additional losses toward $1,837 (Jan. 22 low) could be seen with the violation of the 200-day SMA triggering a technical selloff.
On the upside, the initial resistance is located at $1,860 (50-day SMA) ahead of $1,870 (daily high/Fibonacci 50% retracement) and $1,882 (100-day SMA).
Gold chart (daily)
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