Gold Price Analysis: XAU/USD drops further and approaches $1,900/oz

The dollar’s rally weighs on the price action of the metal.
ECB, US-China, Brexit could keep the downside capped.

Pablo Piovano FXStreet

The ounce troy of the precious metal is suffering another bout of dollar strength and is gradually grinding lower to the vicinity of the $1,900 mark on turnaround Tuesday.

In fact, the greenback is posting decent gains above the 93.00 mark when tracked by the US Dollar Index (DXY), extending the rebound from last week’s +2-year lows in the 91.80/75 band.

However, the omnipresent US-China trade effervescence coupled with rising cautiousness ahead of the ECB event (Thursday) and Brexit uncertainty could keep further pullbacks in Gold somewhat limited for the time being.

The speculative community, in the meantime, pushed net longs in the yellow metal to multi-week peaks during the week ended on September 1 and according to the CFTC Positioning Report.

Gold key levels

XAU/USD

Overview
Today last price	1916.96
Today Daily Change	-11.76
Today Daily Change %	-0.61
Today daily open	1928.72

Trends
Daily SMA20	1945.43
Daily SMA50	1906.38
Daily SMA100	1815.01
Daily SMA200	1693.18

Levels
Previous Daily High	1941.46
Previous Daily Low	1924.64
Previous Weekly High	1992.42
Previous Weekly Low	1916.42
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1931.07
Daily Fibonacci 61.8%	1935.03
Daily Pivot Point S1	1921.75
Daily Pivot Point S2	1914.79
Daily Pivot Point S3	1904.93
Daily Pivot Point R1	1938.57
Daily Pivot Point R2	1948.43
Daily Pivot Point R3	1955.39

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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