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.

Omkar Godbole FXStreet Contributor

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

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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