Gold Price Analysis: XAU/USD rebounds from weekly lows back to the $1,935 area
- XAU/USD back to the $1,930/40 area, the short-term equilibrium level.
- Gold practically flat for the week, silver marginally higher.
Gold prices trimmed losses and rose back to the $1,940 neighbourhood during the American session. XAU/USD bottomed after the release of US economic data at $1,911/oz, the lowest level since August 12 and then rebounded to $1,945.
Near the end of the week, gold is hovering around $1,935 as it has been the case since late Wednesday. The mentioned level appears to be an equilibrium level in the very short term. The main trend is bullish, but currently, XAU/USD is correcting lower. The ongoing recovery of the US dollar is a negative factor for gold.
The area between $1,900 and $1,920 could be seen as a support band that if broken, should open the door to more losses. On the upside, the immediate resistance stands below $1,960 and then $1,980.
Silver also pulled back over the last two days but more moderately than gold. XAG/USD is hovering around $26.60, after rebounding at $26.00. For both metals, the short-term outlook looks challenging as they are correcting or consolidating after a strong rally to multi-year highs for silver, and to record highs for gold.
Gold 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.
