Gold Price Analysis: XAU/USD drops 0.5% on dollar strength


  • Gold drops as dollar gains on Fed statement. 
  • The yellow metal risks falling to its 50-day SMA support. 

Gold is feeling the pull of gravity on Thursday with the US dollar gaining ground against major currencies. 

The yellow metal is trading near $1,950 at press time – down 0.5% on the day. Meanwhile, the dollar index, which gauges the greenback's value against majors, is up 0.30% at 93.41. 

The dollar seems to be drawing bids on the back of the not-so-dovish Fed statement released Wednesday. 

From a technical analysis perspective, gold looks south, having faced rejection at the top end of a one-month-long descending triangle for the second straight day on Wednesday. 

The 50-day simple moving average (SMA) at $1,931 could offer support, which, if breached, would expose the lower end of the descending triangle, currently at $1,909. 

Alternatively, a daily close above Wednesday's high of $1,973 would revive the broader uptrend and open doors for a break above $2,000. 

Daily chart

Trend: Neutral-to-bearish

Technical levels

XAU/USD

Overview
Today last price 1950
Today Daily Change -3.72
Today Daily Change % -0.50
Today daily open 1959
 
Trends
Daily SMA20 1945.01
Daily SMA50 1929.24
Daily SMA100 1831.41
Daily SMA200 1709.96
 
Levels
Previous Daily High 1973.64
Previous Daily Low 1949.93
Previous Weekly High 1966.54
Previous Weekly Low 1906.62
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1964.58
Daily Fibonacci 61.8% 1958.99
Daily Pivot Point S1 1948.07
Daily Pivot Point S2 1937.15
Daily Pivot Point S3 1924.36
Daily Pivot Point R1 1971.78
Daily Pivot Point R2 1984.57
Daily Pivot Point R3 1995.49

 

 

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