Gold consolidates modest losses, holds around $1550


  • Yellow metal heads for daily loss keeps familiar range. 
  • Risk appetite, higher US yields weighed on XAU/USD. 

Gold prices dropped on Monday, on a quiet day for global markets. Price tested levels above $1560 but failed to hold and dropped to as low at $1546 before stabilizing around $1550. 

Eyes on US-China deal 

The improvement in risk sentiment weakened the demand for gold. Among currencies the yen was also hit. Higher US yields also contributed to the decline in gold and JPY. The Swiss franc outperformed despite the environment. 

Trade headlines are behind the optimism. The Chinese delegation led by Vice Premier Liu He just arrived in the US to sign the Phase One trade deal probably on Wednesday. On the data front, the next relevant economic report is US CPI due on Tuesday. 

Technical outlook 

XAU/USD is moving in a consolidation range, between $1540 and $1560. It dropped to the mentioned area after hitting multi-year highs above $1600 last week. The retreat could continue if gold breaks under $1540. The next strong support area might be seen at $1520/25 (horizontal level and the 20-day moving average). 

The dominant trend still points to the upside but it has lost momentum over the last sessions. A firm recovery in XAU/USD above $1560 could signal more gains ahead. The next resistance is seen at $1575.

 

XAU/USD

Overview
Today last price 1550.01
Today Daily Change -10.31
Today Daily Change % -0.66
Today daily open 1560.32
 
Trends
Daily SMA20 1516.21
Daily SMA50 1487.74
Daily SMA100 1496.1
Daily SMA200 1431
 
Levels
Previous Daily High 1561
Previous Daily Low 1545.8
Previous Weekly High 1611.3
Previous Weekly Low 1540.3
Previous Monthly High 1525.1
Previous Monthly Low 1454.05
Daily Fibonacci 38.2% 1555.19
Daily Fibonacci 61.8% 1551.61
Daily Pivot Point S1 1550.42
Daily Pivot Point S2 1540.51
Daily Pivot Point S3 1535.22
Daily Pivot Point R1 1565.62
Daily Pivot Point R2 1570.91
Daily Pivot Point R3 1580.82

 

 

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