Gold Price Analysis: XAU/USD fades pullback moves to keep familiar range near $1,900
- Gold remains mildly offered despite keeping the recovery from Thursday’s low flashed earlier in Asia.
- Three-week-old ascending trend line restricts immediate downside.
- 200-bar SMA, monthly resistance line probe the bulls.
Gold prices stay sluggish around $1,901 while heading into Tuesday’s European session. In doing so, the yellow metal respects the pullback from a short-term support line while also staying below short-term resistances, namely the 200-bar SMA and a falling trend line from September 16.
With the MACD suggesting no clear direction, traders will prefer waiting for a clear break of either $1,918, comprising the resistance line, or a downside break of the support line figures near $1,894.
However, the $1,900 threshold and 200-bar SMA level of $1,913 can work as filters during the quote’s further moves.
Additionally, the bullion’s run-up past-$1,918 will challenge the monthly high of $1,933 ahead of probing the mid-September peak surrounding $1,973.
On the contrary, gold bears’ dominance below $1,894 will have multiple supports around $1,890 and $1,880/75 before directing the precious metal towards the September 28 low of $1,848.82.
Gold four-hour chart
Trend: Sideways
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
