Gold Price Analysis: XAU/USD remains confined in a range around $1865-70 region

Gold was seen consolidating its recent gains to two-week tops.
The set-up supports prospects for a further appreciating move.
Bulls might wait for a move beyond the $1880 congestions zone.

Haresh Menghani FXStreet

Gold remained confined in a narrow trading band through the mid-European session and consolidated this week's solid rebound from the vicinity of the $1800 mark.

Currently hovering around the $1872 region, any subsequent positive move is likely to confront stiff resistance near the $1880 congestion zone. The mentioned barrier coincides with the 50% Fibonacci level of the $1959-$1803 recent leg down and should act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on hourly charts maintained their bullish bias and have just started moving into the positive territory on the daily chart. The set-up supports prospects for additional gains amid sustained US dollar selling, which tends to benefit the dollar-denominated commodity.

That said, bulls might still wait for a sustained move beyond the $1880 hurdle before placing fresh bets and positioning for any further appreciating move. The XAU/USD might then accelerate the positive momentum and aim back to reclaim the $1900 mark, representing the 61.8% Fibo. level resistance.

On the flip side, the 38.2% Fibo. level, around the $1863-62 region, now seems to protect the immediate downside. Any further decline is likely to attract some dip-buying around the $1855 region. This, in turn, should help limit the downside near the 23.6% Fibo. level, around the $1840 area.

XAU/USD 4-hourly chart

Technical levels to watch

XAU/USD

Overview
Today last price	1867.3
Today Daily Change	-2.59
Today Daily Change %	-0.14
Today daily open	1869.89

Trends
Daily SMA20	1877.37
Daily SMA50	1860.13
Daily SMA100	1884.15
Daily SMA200	1846.09

Levels
Previous Daily High	1871.02
Previous Daily Low	1832.48
Previous Weekly High	1863.83
Previous Weekly Low	1816.96
Previous Monthly High	1906.87
Previous Monthly Low	1775.52
Daily Fibonacci 38.2%	1856.3
Daily Fibonacci 61.8%	1847.2
Daily Pivot Point S1	1844.57
Daily Pivot Point S2	1819.26
Daily Pivot Point S3	1806.03
Daily Pivot Point R1	1883.11
Daily Pivot Point R2	1896.34
Daily Pivot Point R3	1921.65

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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