Gold Price News and Forecast: XAU/USD continues to consolidate
|Gold Price Analysis: XAU/USD pierces $1,940 on the break of immediate falling channel
Gold prices rise to $1,940.52, up 0.28% on a day, during the early Monday. The bullion recently flashed the intraday high of $1,940.98 after breaking a downward sloping trend channel formation from Thursday. The up-move also gains support from bullish MACD. As a result, the quote’s run-up to 200-HMA and 50% Fibonacci retracement of August 26 to September 01 upside, near $,1947/49, is more likely.
However, a sustained break of $1,949, also clearing the $1,950 round-figures, will enable the bulls to challenge the $1,977 and $2,000 psychological benchmark. Alternatively, the commodity’s downside break of the channel’s upper line, at $1,936, will be followed by $1,930 to challenge the short-term declines.
During the quote’s further weakness past-$1,930, the channel’s support line near $1,912 and August 27 low around $1,910 may offer intermediate halts ahead of recalling $1,900 on the charts.
Asia eases into the new week
Gold had another sideways day on Friday, finishing the session just 0.15% higher at $1934.00 an ounce. Most pleasingly for gold bulls, the yellow metal weathered the storm of a higher US Dollar and higher US yields. Gold has a clearly denoted support zone now between $1900.00 and !920.00 an ounce. What is clear is that gold continues to find plenty of willing buyers on dips to the $1930.00 region, and that investors are content to wait for those price dips, and not chase prices higher.
Having said that, a deeper correction in gold prices cannot be entirely ruled out, especially if the US Dollar short squeeze on currency markets finds renewed momentum this week. A failure of $1900.00 an ounce targets a retest of the August lows at $1863.00 an ounce, followed by the 100-DMA at $1815.00 an ounce. Daily resistance remains at $2000.00 an ounce.
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