Gold Price Analysis: XAU/USD at four months lows, testing $1800


  • Gold finds support, for now, at the $1800.
  • US dollar remains under pressure amid risk appetite.

XAU/USD is falling for the second day in a row extending the correction from record-high levels. Recently bottomed at $1,800/oz, the lowest level since mid-July. The area around $1,800 capped the downside for now, as the bearish pressure is still elevated.

As of writing, XAU/USD stands at $1,805 down almost $70 from the level it had at the beginning of the week. Gold remains under pressure amid risk appetite, following positive news about COVID-19 vaccines and about the US presidential transition.

Also, US economic data contribute to the decline in gold. On Monday, the Markit PMI report triggered a sharp rally of the US dollar and pushed the metal under $1,850, leaving it vulnerable to more losses.

The bearish momentum remains intact on gold, but the $1,800 are might offer support; so far it held after being tested several times over the last hours. A break lower could trigger more volatility. The next strong supports might be seen at $1,785 and $1,750. On the upside, now $1,820 is the immediate resistance followed by $1,850.

Technical levels

XAU/USD

Overview
Today last price 1802.7
Today Daily Change -33.42
Today Daily Change % -1.82
Today daily open 1836.12
 
Trends
Daily SMA20 1886.06
Daily SMA50 1897.46
Daily SMA100 1910.27
Daily SMA200 1795.22
 
Levels
Previous Daily High 1876.14
Previous Daily Low 1831.01
Previous Weekly High 1899.14
Previous Weekly Low 1852.8
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1848.25
Daily Fibonacci 61.8% 1858.9
Daily Pivot Point S1 1819.37
Daily Pivot Point S2 1802.63
Daily Pivot Point S3 1774.24
Daily Pivot Point R1 1864.5
Daily Pivot Point R2 1892.89
Daily Pivot Point R3 1909.63

 

 

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