Breaking: Gold drops below key $1,800 area

FXStreet Team FXStreet

Gold is already down more than 1% on a daily basis and trades below $1,800 for the first time since January 10.

The unabated dollar strength following FOMC Chairman Jerome Powell's hawkish remarks continues to weigh heavily on the pair. Additionally, the latest data releases from the US seem to be allowing the greenback to continue to outperform its rivals. The US Dollar Index, which gained more than 0.5%, is sitting at its highest level since July, rising 0.7% on the day at 97.15.

The US Bureau of Economic Analysis reported on Thursday that the US economy grew by 6.9% on a yearly basis in the fourth quarter. This reading followed the previous quarter's expansion of 2.3% and surpassed the market expectation of 5.5% by a wide margin.

The technical outlook confirms that sellers dominate XAU/USD's action with the Relative Strength Index (RSI) indicator on the daily chart falling below 50. Additionally, the price is now below the ascending trend line coming from early December. Finally, gold is trading below the 200-day SMA and stays within a touching distance of the 100-day SMA.

A daily close below $1,805 (200-day SMA) could attract additional sellers and open the door for another leg lower toward $1,780 (static level).

Other levels to keep an eye on

XAU/USD

Overview
Today last price	1799.28
Today Daily Change	-18.60
Today Daily Change %	-1.02
Today daily open	1817.88

Trends
Daily SMA20	1820
Daily SMA50	1804.32
Daily SMA100	1795.54
Daily SMA200	1805.54

Levels
Previous Daily High	1850.16
Previous Daily Low	1815.05
Previous Weekly High	1847.95
Previous Weekly Low	1805.84
Previous Monthly High	1830.39
Previous Monthly Low	1753.01
Daily Fibonacci 38.2%	1828.46
Daily Fibonacci 61.8%	1836.75
Daily Pivot Point S1	1805.23
Daily Pivot Point S2	1792.59
Daily Pivot Point S3	1770.12
Daily Pivot Point R1	1840.34
Daily Pivot Point R2	1862.81
Daily Pivot Point R3	1875.45

Author

FXStreet Team

FXStreet

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