Gold Price Analysis: XAU/USD holds onto modest gains, capped by the $1845 area


  • The metal gains but fails to break $1845.
  • A pullback in Wall Street and a stabilization of the US dollar limited gold.

Gold is rising modestly on Tuesday, on the back of a weaker US dollar and US yields. It peaked on European hours at $1845 and recently at $1842. It is hovering around $1840, up for the second day in a row.

The yellow metal bottomed at $1833 and quickly rebounded; the move lower took place amid a correction in equity prices in Wall Street that trimmed gains. The US dollar is falling across the board. Over the last hours, it managed to stabilize, but the recovery failed to gain momentum. The DXY stands below 90.50 and is starting to look to the daily low. The US bond market opened after Monday’s holiday. The 10-years yield bottomed at 1.08% and then rebounded to 1.10%.

The reaction to Yellen’s testimony has been limited. She spoke about supporting the economy at times when interest rates at historic lows. Her words offered nothing new to market participants.

From a technical perspective, the short-term bias in gold looks biased to the upside. The XAU/USD faces a strong resistance at $1845 that if broken, could allow for an extension toward $1855/60. On the flip side, if gold drops and consolidates below $1835, it would point to a test of $1830.

Technical levels

XAU/USD

Overview
Today last price 1841.04
Today Daily Change 3.91
Today Daily Change % 0.21
Today daily open 1837.13
 
Trends
Daily SMA20 1878.57
Daily SMA50 1860.66
Daily SMA100 1886.17
Daily SMA200 1844.76
 
Levels
Previous Daily High 1840.86
Previous Daily Low 1802.8
Previous Weekly High 1863.83
Previous Weekly Low 1816.96
Previous Monthly High 1906.87
Previous Monthly Low 1775.52
Daily Fibonacci 38.2% 1826.32
Daily Fibonacci 61.8% 1817.34
Daily Pivot Point S1 1813
Daily Pivot Point S2 1788.87
Daily Pivot Point S3 1774.94
Daily Pivot Point R1 1851.06
Daily Pivot Point R2 1864.99
Daily Pivot Point R3 1889.12

 

 

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