Gold Price Analysis: XAU/USD recovers from session lows, $2,015 is key support

Gold's daily chart shows early signs of bearish reversal.
A move below Friday's low of $2,015 would confirm the trend change.

Omkar Godbole FXStreet Contributor

Gold is trading near $2,031 per ounce at press time, having put in a session low of $2,019 early Monday.

The yellow metal created a bearish outside day candle on Friday, as prices clocked a high and low of $2,075 and $2,015, respectively, and ended the day with a 1.39% drop, engulfing Thursday’s price gain.

The bearish outside day is widely taken to represent a bullish-to-bearish trend change when it appears after a notable rally. In this case, the candlestick has appeared at record highs and after a stellar 35% year-to-date gain.

The trend change would be confirmed if the bulls fail to defend Friday’s low of $2,015. As such, Friday’s low is a key support to watch out for this week.

Acceptance under $2,015 would imply an interim top has been made and open the doors for a stronger pullback to $,1981 (resistance-turned-support as per 4-hour chart).

Friday’s bearish candle would be invalidated if prices rise above $2,075. However, with the 14-day relative strength index and slow stochastic reporting overbought conditions, a move below $2,015 looks more likely.

Daily chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	2032.14
Today Daily Change	-3.02
Today Daily Change %	-0.15
Today daily open	2035.16

Trends
Daily SMA20	1914.43
Daily SMA50	1815.93
Daily SMA100	1750.33
Daily SMA200	1642.89

Levels
Previous Daily High	2075.32
Previous Daily Low	2015.68
Previous Weekly High	2075.32
Previous Weekly Low	1960.67
Previous Monthly High	1984.8
Previous Monthly Low	1757.7
Daily Fibonacci 38.2%	2038.46
Daily Fibonacci 61.8%	2052.54
Daily Pivot Point S1	2008.79
Daily Pivot Point S2	1982.41
Daily Pivot Point S3	1949.15
Daily Pivot Point R1	2068.43
Daily Pivot Point R2	2101.69
Daily Pivot Point R3	2128.07

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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