Gold Price Analysis: XAU/USD trades with modest losses, around $1920-15 region

Gold remained depressed for the fourth straight day amid a modest USD uptick.
Concerns about the US economic recovery might help limit any deeper losses.
US macro data eyed for some impetus ahead of the Jackson Hole Symposium.

Haresh Menghani FXStreet

Gold edged lower through the early European session on Wednesday and dropped to fresh daily lows, around the $1915 region in the last hour.

The precious metal extended this week's retracement slide from the $1962 region and remained depressed for the fourth consecutive session on Tuesday. The downtick also marked the fifth day of a negative move in the previous six and was sponsored by a modest pickup in the US dollar demand, which tends to undermine the dollar-denominated commodity.

Tuesday's disappointing release of the US Consumer Confidence Index fueled worries about the US economic recovery and provided a modest lift to the greenback's status as the global reserve currency. This comes on the back of the optimism over a potential vaccine/treatment for COVID-19, which further dented the commodity's safe-haven status.

Apart from this, a strong follow-through pickup in the US Treasury bond yields was seen exerting pressure on the non-yielding yellow metal. However, investors' reluctance to place any aggressive bets ahead of the Fed Chair Jerome Powell's speech at the Jackson Hole Symposium might help limit any deeper losses for the commodity, at least for now.

Market participants now look forward to the US Durable Goods Orders. Barring any significant divergence from the expected figures, the data is unlikely to provide any meaningful impetus. Hence, it will be prudent to wait for some strong follow-through selling before positioning for an extension of the recent sharp corrective slide from record highs set on August 7.

Technical levels to watch

XAU/USD

Overview
Today last price	1919.72
Today Daily Change	-8.46
Today Daily Change %	-0.44
Today daily open	1928.18

Trends
Daily SMA20	1972.63
Daily SMA50	1871.68
Daily SMA100	1792.11
Daily SMA200	1671.4

Levels
Previous Daily High	1937.67
Previous Daily Low	1914.4
Previous Weekly High	2015.65
Previous Weekly Low	1911.64
Previous Monthly High	1984.8
Previous Monthly Low	1757.7
Daily Fibonacci 38.2%	1923.29
Daily Fibonacci 61.8%	1928.78
Daily Pivot Point S1	1915.83
Daily Pivot Point S2	1903.48
Daily Pivot Point S3	1892.56
Daily Pivot Point R1	1939.1
Daily Pivot Point R2	1950.02
Daily Pivot Point R3	1962.37

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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