Gold Price Analysis: XAU/USD struggles to capitalize on intraday bounce, up little around $1830-32


  • Gold managed to find decent support ahead of the $1800 mark and reversed an intraday dip.
  • The prevalent cautious mood, weaker US bond yields extended some support to the metal.
  • A goodish pickup in the USD demand kept a lid on any meaningful gains for the commodity.

Gold struggled to capitalize on its goodish intraday bounce of nearly $40 and was last seen trading with modest gains, around the $1830-32 region.

The precious metal witnessed some selling during the early part of the trading action on Monday and dropped to one-and-half-month lows, albeit managed to find decent support ahead of the $1800 mark. The prevalent cautious mood extended some support to traditional safe-haven assets and assisted the XAU/USD to attract some dip-buying.

Friday's disappointing US Retail Sales added to growing market worries about the potential economic fallout from the continuous surge in new COVID-19 cases. The risk-off mood was evident from a weaker trading sentiment around the equity markets and reinforced by sliding US Treasury bond yields, which further benefitted the non-yielding yellow metal.

However, the emergence of some fresh US dollar buying kept a lid on any runaway rally for the dollar-denominated commodity, rather prompted some selling near 50-hour SMA. The mentioned barrier is pegged near the $1840 region, which should now act as a key pivotal point for short-term traders amid absent relevant market moving economic releases from the US.

From a technical perspective, sustained weakness below the very important 200-day SMA might have already set the stage for an extension of the recent downfall. That said, traders might still wait for a sustained weakness below the $1800 mark before confirming the bearish bias and positioning for any further depreciating move for the XAU/USD.

Technical levels to watch

XAU/USD

Overview
Today last price 1831.81
Today Daily Change 6.07
Today Daily Change % 0.33
Today daily open 1825.74
 
Trends
Daily SMA20 1880.49
Daily SMA50 1861.23
Daily SMA100 1887.48
Daily SMA200 1844.14
 
Levels
Previous Daily High 1857.02
Previous Daily Low 1823.4
Previous Weekly High 1863.83
Previous Weekly Low 1816.96
Previous Monthly High 1906.87
Previous Monthly Low 1775.52
Daily Fibonacci 38.2% 1836.24
Daily Fibonacci 61.8% 1844.18
Daily Pivot Point S1 1813.75
Daily Pivot Point S2 1801.77
Daily Pivot Point S3 1780.13
Daily Pivot Point R1 1847.37
Daily Pivot Point R2 1869.01
Daily Pivot Point R3 1880.99

 

 

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