Gold Price Analysis: XAU/USD catches a bid at $1850 but the retracement may not be over

Gold trades 0.29% higher after the recent price drop.
There are some key resistance levels above that look strong.

Rajan Dhall, MSTA FX Daily

Gold 4-hour chart

Gold has been moving in a downward trajectory since the greenback strength kicked in on 1st September. Since then, the greenback has broken out of consolidation zones in EUR/USD and most of the other majors. The market was looking towards the Fed to see if they would add to their stimulus programs but they have been deflecting the pressure over to the White House who continues to stall on a fiscal deal.

The price has broken out of some key support zones to the downside. The black level at USD 1912.55 per troy ounce is the main level to look out for. If this correction moves higher the aforementioned price level could be very important. Before that, the red level just above USD 1880 per ounce could be a stalling point but we must wait to see how the price reacts at the level.

The indicators are still bearish. The MACD histogram is red and the signal lines are still under the zero level. The Relative Strength Index is very depressed and is hugging the oversold area.

Longer-term this trend could still be an uptrend (weekly and monthly timeframes) but at the moment traders and investors are looking to time the retracement. It is very hard to catch a falling knife and predict how far these moves will last but keep an eye on the resistance zones and this retracement could move further.

Additional levels

XAU/USD

Overview
Today last price	1869.08
Today Daily Change	5.63
Today Daily Change %	0.30
Today daily open	1863.45

Trends
Daily SMA20	1938.58
Daily SMA50	1940.13
Daily SMA100	1842.31
Daily SMA200	1720.95

Levels
Previous Daily High	1905.5
Previous Daily Low	1855.89
Previous Weekly High	1973.64
Previous Weekly Low	1932.88
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1874.84
Daily Fibonacci 61.8%	1886.55
Daily Pivot Point S1	1844.39
Daily Pivot Point S2	1825.34
Daily Pivot Point S3	1794.78
Daily Pivot Point R1	1894
Daily Pivot Point R2	1924.56
Daily Pivot Point R3	1943.61

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

EUR/USD looks sidelined below 1.1600

EUR/USD remains on the back foot in the latter part of the NA session on Thursday, now attempting a consolidative theme in the sub-1.1600 region. A more cautious market mood, driven by the escalating conflict in the Middle East, together with broad-based strength in the US Dollar, is favouring the continuation of the leg lower in spot.

GBP/USD stays offered near 1.3340

GBP/USD fades Wednesday’s uptick and trades with decent losses in the 1.3340 zone in the latter part of Thursday’s session. Cable’s weakness, alongside the rest of the risk complex, follows the strong performance of the Greenback amid intense geopolitical jitters.

Gold: further weakness could challenge $5,000

Gold comes under fresh selling pressure on Thursday, slipping back below the $5,100 mark per troy ounce. Persistent strength in the US Dollar (USD) is preventing the yellow metal from building a meaningful recovery, even as markets remain risk-averse amid the deepening conflict in the Middle East.

Crypto Today: Bitcoin, Ethereum, XRP hold weekly gains despite US-Iran war

The cryptocurrency market is gaining strength on Thursday, building on Wednesday's upswing, which saw Bitcoin reach a weekly high above $74,000. Ethereum and Ripple are moderating their recent gains amid uncertainty stemming from the escalating war in the Middle East.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.