Gold erases daily losses and approaches $1,200

  • XAU/USD rebounds from near $1,190/oz but remains under $1,200.
  • Price continues to consolidate with risks tilted to the downside.

Gold prices turned positive for the day but remained below $1,200/oz. Earlier on Monday bottomed at $1,191.50 before bouncing to the upside. Recently reached $1,198.40, fresh daily high and then pulled back modestly. The recovery was boosted by a decline of the US dollar against majors.

So far, price action remains limited on Monday across financial markets. Gold holds within last week price range, consolidating after the rebound from multi-month lows ended at $1,215 two weeks ago. If XAU/USD rises back above $1,200 the positive tone is likely to gain momentum for a potential test of $1,205. While on the flip side, the bearish pressure could rise.

Levels to watch

To the upside, immediate resistance is seen at $1,200, $1,207 (last week high) and $1,215. On the flip side, support could be located at $1,190 and $1,182 (Aug 23 low).

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