Gold Price Analysis: XAU/USD hangs near three-week lows, just above $1810 level


  • Gold witnessed some heavy selling on Thursday and dived to near three-week lows.
  • The technical set-up supports prospects for an eventual break below the $1800 mark.
  • Attempted recovery move might now confront stiff resistance near the $1848-50 area.

Gold maintained its offered tone through the first half of the European session and was last seen trading around the $1815 region, just above near three-week lows set earlier this Thursday.

Given this week's breakthrough a short-term ascending trend-line, a subsequent weakness below the $1830 horizontal levels supports prospects for a further near-term depreciating move. Hence, a fall back towards challenging 2021 lows, around the $1800 mark touched on January 18, looks a distinct possibility.

Meanwhile, technical indicators on the daily chart have been gaining negative momentum and are still far from being in the oversold territory. Hence, some follow-through selling below the mentioned level might be seen as a fresh trigger for bearish traders and pave the way for an extension of the downward trajectory.

The next relevant target on the downside is pegged near the $1787-86 area before the XAU/USD eventually slide to test November 2020 swing lows, around the $1765-64 region.

On the flip side, the $1830 level now becomes immediate resistance. Any further recovery might be seen as a selling opportunity and remain capped near the ascending trend-line support breakpoint, around the $1848-50 region. The latter coincides with the very important 200-day SMA and should now act a key pivotal point for short-term traders.

XAU/USD 4-hourly chart

fxsoriginal

Technical levels to watch

XAU/USD

Overview
Today last price 1815.89
Today Daily Change -17.11
Today Daily Change % -0.93
Today daily open 1833
 
Trends
Daily SMA20 1850.78
Daily SMA50 1857.93
Daily SMA100 1874.71
Daily SMA200 1853.06
 
Levels
Previous Daily High 1845.02
Previous Daily Low 1829.68
Previous Weekly High 1875.7
Previous Weekly Low 1831.36
Previous Monthly High 1959.42
Previous Monthly Low 1802.8
Daily Fibonacci 38.2% 1835.54
Daily Fibonacci 61.8% 1839.16
Daily Pivot Point S1 1826.78
Daily Pivot Point S2 1820.56
Daily Pivot Point S3 1811.44
Daily Pivot Point R1 1842.12
Daily Pivot Point R2 1851.24
Daily Pivot Point R3 1857.46

 

 

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