Gold again faces rejection above $1,810

Gold has retreated to $1,808 from the session high of $1,813.
A sustained break above $1,810 remains elusive as the dollar draws bids.
Upbeat China GDP may weaken the haven demand for the yellow metal.

Omkar Godbole FXStreet Contributor

Gold bulls continue to struggle to establish a strong foothold above $1,810.

At press time the yellow metal is trading largely unchanged on the day at $1,809, having faced rejection at $1,813 early Thursday. The safe-haven metal has failed to keep gains above $1,810 in four out of the last five trading days.

Indecisive market

Wednesday’s Doji candle is suggestive of indecision in the marketplace. Some may argue that the Doji candle has appeared at multi-year highs and represents buyer exhaustion.

While that could be the case, so far, the downside has been capped near $1,808. Besides, the yellow metal is trading well within Wednesday’s trading range of $1,815-$1,802. Acceptance below $1,802 would confirm a short-term bearish reversal.

Wednesday’s low could come into play during the day ahead, as the US dollar, gold’s biggest nemesis, is flashing green. At press time, the dollar index, which tracks the value of the greenback against majors, is trading at 96.14, representing 0.10% gain on the day. The dollar seems to be drawing haven bids on account of the escalating US-China tensions and the 0.5% decline in the S&P 500 futures at press time.

Further, haven demand for gold may weaken, allowing bears to push prices lower, as data released at 02:00 GMT showed China’s economy returned to growth in the second quarter.

Gold, however, may pick up a bid during the American trading hours if the US retail sales data misses expectations by a big margin, sending the US dollar lower.

Technical levels

XAU/USD

Overview
Today last price	1809.15
Today Daily Change	-1.29
Today Daily Change %	-0.07
Today daily open	1810.44

Trends
Daily SMA20	1778.81
Daily SMA50	1744.48
Daily SMA100	1692.99
Daily SMA200	1605.54

Levels
Previous Daily High	1815.1
Previous Daily Low	1802.56
Previous Weekly High	1818.17
Previous Weekly Low	1770.16
Previous Monthly High	1785.91
Previous Monthly Low	1670.76
Daily Fibonacci 38.2%	1810.31
Daily Fibonacci 61.8%	1807.35
Daily Pivot Point S1	1803.63
Daily Pivot Point S2	1796.83
Daily Pivot Point S3	1791.09
Daily Pivot Point R1	1816.17
Daily Pivot Point R2	1821.91
Daily Pivot Point R3	1828.71

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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