Gold Price Analysis: XAU/USD recovers early lost ground to seven-day lows, back above $1900 mark


  • Gold managed to attract some dip-buying on Monday and refreshed daily tops in the last hour.
  • The technical set-up still favours bearish traders and supports prospects for a further decline.
  • Attempted move up might confront stiff resistance and remain capped near the $1918-19 zone.

Gold reversed an early dip to the $1891 region, or seven-day lows and refreshed daily tops during the mid-European session, albeit lacked any strong follow-through.

The goodish intraday rebound back above the $1900 mark stalled near 200-hour SMA. The mentioned barrier also coincides with a one-month-old ascending trend-line support breakpoint, which should now act as a key pivotal point for intraday traders.

Meanwhile, technical indicators on the 1-hourly chart have again started moving into the positive territory and support prospects for a further move up. However, oscillators on 4-hourly/daily charts maintained their bearish bias and favour bears.

Hence, any subsequent positive move beyond the $1905-06 region (support-turned-resistance) will be seen as an opportunity to initiate fresh bearish positions. This, in turn, should cap the upside for the XAU/USD near the $1918-19 supply zone.

That said, some follow-through buying has the potential to push the precious metal back towards a strong horizontal resistance, around the $1931-33 region. Only a sustained move beyond will negate the near-term bearish bias and pave the way for additional gains.

On the flip side, weakness below the $1890 area, leading to a subsequent breakthrough the 100-day SMA, around the $1883 region, should accelerate the fall towards September monthly swing lows support, around the $1848-49 zone.

XAU/USD 1-hourly chart

fxsoriginal

Technical levels to watch

XAU/USD

Overview
Today last price 1901.28
Today Daily Change 0.38
Today Daily Change % 0.02
Today daily open 1900.9
 
Trends
Daily SMA20 1901.83
Daily SMA50 1923.08
Daily SMA100 1881.38
Daily SMA200 1761.89
 
Levels
Previous Daily High 1914.3
Previous Daily Low 1894.48
Previous Weekly High 1931.54
Previous Weekly Low 1894.48
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1902.05
Daily Fibonacci 61.8% 1906.73
Daily Pivot Point S1 1892.15
Daily Pivot Point S2 1883.41
Daily Pivot Point S3 1872.33
Daily Pivot Point R1 1911.97
Daily Pivot Point R2 1923.05
Daily Pivot Point R3 1931.79

 

 

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