Gold Price Analysis: XAU/USD consolidated in a range around $1930 level

Gold extended its sideways consolidative price action for the second straight day on Monday.
A strong pickup in the USD demand capped the upside for the dollar-denominated commodity.
Concerns about the US economic recovery extended some support to the precious metal.

Haresh Menghani FXStreet

Gold remained confined in a narrow trading band through the early North American session and was last seen trading in the neutral territory, around the $1930 region.

The precious metal lacked any firm directional bias and seesawed between tepid gains/minor losses for the second consecutive session on Monday. The early uptick quickly ran out of the steam near the $1941-42 region on the back of a strong pickup in the US dollar demand, which tends to undermine the dollar-denominated commodity.

However, concerns about the sustainability of the US economic recovery, amid the ever-increasing coronavirus cases, extended some support to precious metal's safe-haven status and helped limit the downside. Investors also seemed reluctant to place any aggressive bets amid holiday-thinned liquidity conditions.

From a technical perspective, the commodity on Friday slipped below a three-month-old ascending trend-line support and seems vulnerable to slide further. However, it will be prudent to wait for some strong follow-through selling before positioning for any further near-term depreciating move amid absent relevant economic data.

Technical levels to watch

XAU/USD

Overview
Today last price	1930.26
Today Daily Change	-3.90
Today Daily Change %	-0.20
Today daily open	1934.16

Trends
Daily SMA20	1950.37
Daily SMA50	1903.26
Daily SMA100	1812.68
Daily SMA200	1690.86

Levels
Previous Daily High	1949.5
Previous Daily Low	1916.42
Previous Weekly High	1992.42
Previous Weekly Low	1916.42
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1936.86
Daily Fibonacci 61.8%	1929.06
Daily Pivot Point S1	1917.22
Daily Pivot Point S2	1900.28
Daily Pivot Point S3	1884.14
Daily Pivot Point R1	1950.3
Daily Pivot Point R2	1966.44
Daily Pivot Point R3	1983.38

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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