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
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
