XAU/USD: Gold struggles against the US dollar to hold above critical levels at 1855
Gold struggles to hold above critical levels at 1855; prices have crisscrossed this level in the past three days but failed to hold, as indicated on the chart below. It is now in a consolidation move, which saw downside moves seem well supported at 1840 and upper range at 1864 and 1860.
The recent drop in the dollar did not have any impact on gold prices. Gold prices lack the momentum to push to the next major level at 1870 and at risk of heading down to 1824.
Perhaps another attempt at 1855 might push through to 1870 and create some much-needed energy for the next phase of its recovery.
If it fails at 1840, then there is a high possibility it might drop to 1825 or even further. As of writing, the dollar holds above 90.200, which could put pressure on gold prices.
Support estimates: 1848, 1844, 1840, 1834, 1830, 1824.
Resistance estimates: 1855, 1860, 1865, 1870, 1875, 1880, 1885.