Gold Price Analysis: XAU/USD extends slide to fresh monthly lows, ready to test $1,860

Greenback gains momentum across the board as Wall Street turned to the downside.
XAU/USD about to test August lows near $1,860.

Matías Salord FXStreet

The metal resumed its decline on Wednesday. Gold broke under $1,870/oz and tumbled to $1,864, the lowest level in six weeks, stalling just before the August low at $1,862.

XAU/USD remains under pressure, affected by a stronger US dollar across the board and by a deterioration in market sentiment. The greenback gained momentum after the beginning of the American session despite a mixed US preliminary Markit PMI report. The DXY climbed to 94.30, the highest level since late July.

While XAU/USD drops 1.85%, silver (XAG/USD) is losing more than 5%, after breaking below the August low.

Gold levels to watch

The immediate support in XAU/USD is seen at $1,860/62 (August low); the next strong barrier could be seen at $1,815/20. A recovery back above $1,880 would alleviate the short-term bearish pressure, while above $1,915 the technical outlook would improve.

XAU/USD

Overview
Today last price	1871.94
Today Daily Change	-28.23
Today Daily Change %	-1.49
Today daily open	1900.17

Trends
Daily SMA20	1943.11
Daily SMA50	1939.07
Daily SMA100	1840.53
Daily SMA200	1719.01

Levels
Previous Daily High	1920.04
Previous Daily Low	1894.79
Previous Weekly High	1973.64
Previous Weekly Low	1932.88
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1904.44
Daily Fibonacci 61.8%	1910.39
Daily Pivot Point S1	1889.96
Daily Pivot Point S2	1879.75
Daily Pivot Point S3	1864.71
Daily Pivot Point R1	1915.21
Daily Pivot Point R2	1930.25
Daily Pivot Point R3	1940.46

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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