Gold Price Analysis: XAU/USD on the defensive below $1930 level

Gold struggled to capitalize on its early uptick amid a goodish pickup in the USD demand.
The downside seems limited on the back of concerns about the global economic recovery.

Haresh Menghani FXStreet

Gold refreshed daily lows, around the $1927-26 region during the early European session, albeit lacked any strong follow-through selling.

The precious metal failed to capitalize on its early uptick, instead met with some fresh supply near the $1941-42 region and was being pressured by a strong pickup in the US dollar demand. As investors looked past Friday's mixed US monthly jobs report, the greenback was back in demand on the first day of a new trading week. This, in turn, was seen as one of the key factors weighing on the dollar-denominated commodity.

However, concerns about the global economic recovery, amid the ever-increasing COVID-19 cases extended some support to the precious metal's safe-haven status. Moreover, holiday-thinned liquidity conditions might further hold investors from placing any aggressive bets and might help limit any deeper losses, at least for the time being.

From a technical perspective, the commodity on Friday slipped below a near three-month-old ascending trend-line support but managed to find some support ahead of the $1900 mark. The subsequent range-bound price action warrants some caution for bearish traders and before positioning for any further near-term depreciating move.

A convincing break below the mentioned $1900 level should pave the way for a slide towards August monthly swing lows support near the $1863-62 region. The US markets are closed on Monday in observance of Labor Day. Hence, the USD price dynamics might continue to act as an exclusive driver of the commodity's intraday momentum.

Technical levels to watch

XAU/USD

Overview
Today last price	1928.81
Today Daily Change	-5.35
Today Daily Change %	-0.28
Today daily open	1934.16

Trends
Daily SMA20	1950.37
Daily SMA50	1903.26
Daily SMA100	1812.68
Daily SMA200	1690.86

Levels
Previous Daily High	1949.5
Previous Daily Low	1916.42
Previous Weekly High	1992.42
Previous Weekly Low	1916.42
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1936.86
Daily Fibonacci 61.8%	1929.06
Daily Pivot Point S1	1917.22
Daily Pivot Point S2	1900.28
Daily Pivot Point S3	1884.14
Daily Pivot Point R1	1950.3
Daily Pivot Point R2	1966.44
Daily Pivot Point R3	1983.38

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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