Gold Price Analysis: XAU/USD hangs near 2-month lows, bears await a break below 100-DMA

Resurgent USD demand exerted some fresh pressure on the dollar-denominated commodity.
The set-up favours bearish traders and supports prospects for further near-term weakness.
Any attempted recovery might continue to confront stiff resistance near the $1875-78 area.

Haresh Menghani FXStreet

Gold failed to capitalize on the previous day's modest rebound from the vicinity of 100-day SMA support, instead met with some fresh supply on Friday. The emergence of some fresh USD buying weighed on the dollar-denominated commodity and dragged it back closer to two-month tops touched in the previous session.

Given this week's breakdown through the $1900 horizontal support, the precious metal's inability to register any meaningful recovery suggests that the recent bearish pressure might still be far from being over. The negative outlook is further reinforced by bearish technical indicators on the daily chart.

Adding to this, the fact that XAU/USD has now found acceptance below the 50% Fibonacci level of the $1671-$2075 positive move supports prospects for further weakness. That said, traders might still wait for some follow-through selling below 100-DMA support, around the $1845 region, before positioning for a fall towards 61.8% Fibo. level, around the $1822 area.

On the flip side, the $1875-77 region now seems to have emerged as immediate strong resistance. A sustained strength beyond might trigger some short-covering move and pushed the XAU/USD back closer to the $1900 strong support breakpoint.

Gold daily chart

Technical levels to watch

XAU/USD

Overview
Today last price	1861.36
Today Daily Change	-6.34
Today Daily Change %	-0.34
Today daily open	1867.7

Trends
Daily SMA20	1935.48
Daily SMA50	1941.54
Daily SMA100	1843.82
Daily SMA200	1722.91

Levels
Previous Daily High	1877.12
Previous Daily Low	1848.84
Previous Weekly High	1973.64
Previous Weekly Low	1932.88
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1866.32
Daily Fibonacci 61.8%	1859.64
Daily Pivot Point S1	1851.99
Daily Pivot Point S2	1836.27
Daily Pivot Point S3	1823.71
Daily Pivot Point R1	1880.27
Daily Pivot Point R2	1892.83
Daily Pivot Point R3	1908.55

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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