Gold Price Analysis: XAU/USD fails to break $1850 and turns to the downside
- XAU/USD losses momentum near $1850 and falls hitting fresh daily lows.
- The metal is about to end a three-day positive streak, after rising more than $80 from the weekly bottom.
Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.
It was a volatile week for gold. From the Monday low at $1763 rose more than $80. As of writing, it is up 4% for the week. The sharp rebound mitigated the bearish pressure.
The recovery in gold was capped by the strong $1845/50 area that is a critical resistance. A break higher should lead to further gains. So far, every approximation was followed by a limited correction lower. The positive momentum will likely continue to hold while price remains above $1800. A slide below would expose the next support at $1775 and the recent low of $1764.
Gold is about to end the week higher, after losing almost $200 over the previous three weeks. The move to the upside started with a technical correction and amid profit-taking. More recently, it was the dollar’s weakness that supported the move higher.
Technical levels
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.
