Gold Price Analysis: XAU/USD back under pressure after falling sharply to $1836


  • DXY holds onto modest losses, falling after rising during four consecutive days.
  • Gold unable to hold above $1850, looks vulnerable for a test of $1830/35.

Gold is trading around the same level it closed on Monday, around $1845. The yellow metal tumbled from two-day highs above $1860 to $1836, in two hours. It then rebounded, unable to recover $1850.

Volatility in XAU/USD soared even as financial markets remained mostly quiet moving sideways. The US Dollar is falling at a modest pace. Currency pairs like EUR/USD, USD/JPY, USD/CHF and NZD/USD are moving sideways, without a clear trend. US yields continue to be a key driver. The 10-year hit 1.18% for the first time since March.

From a technical perspective, gold looks biased on the downside in the short-term, while below the $1850 zone, a confluence of an important horizontal level and the 20 and 55-hours moving averages. A recovery above would add support to the yellow metal.

The sharp reversal on Tuesday found support above $1835. A break lower would expose the recent low at $1817 that protects the $1800 zone.

Technical levels

XAU/USD

Overview
Today last price 1845.24
Today Daily Change -0.02
Today Daily Change % -0.00
Today daily open 1845.26
 
Trends
Daily SMA20 1885.83
Daily SMA50 1867.93
Daily SMA100 1891.46
Daily SMA200 1840.44
 
Levels
Previous Daily High 1856.82
Previous Daily Low 1816.96
Previous Weekly High 1959.42
Previous Weekly Low 1828.27
Previous Monthly High 1906.87
Previous Monthly Low 1775.52
Daily Fibonacci 38.2% 1832.19
Daily Fibonacci 61.8% 1841.59
Daily Pivot Point S1 1822.54
Daily Pivot Point S2 1799.82
Daily Pivot Point S3 1782.68
Daily Pivot Point R1 1862.4
Daily Pivot Point R2 1879.54
Daily Pivot Point R3 1902.26

 

 

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