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
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.
