Gold Price Analysis: XAU/USD unable to regain the $1,900 level


  • Gold recovery remains limited below $1,900 area.
  • XAU/USD lacks momentum amid the brighter market mood.
  • Bearish confirmation below $1,850 support might accelerate the downtrend.

Gold futures have failed on their attempts to return above $1,900 level on Monday and the yellow metal has pulled back to the previous days’ range, with downside attempts supported above $1,870.

Gold lacks strength amid a brighter market mood

XAU/USD’s bullish attempts have been stopped right below the $1900 level on Monday as the brighter market mood has dented demand for the safe-haven gold. 

The upbeat Chinese industrial production and the stronger than expected foreign investment figures have confirmed that China’s economy is accelerating after the pandemic shock. This has improved investors' confidence in the global economic outlook.

Furthermore, Moderna’s announcement that their COVID-19 vaccine is 94.5% effective, has contributed to brightening sentiment triggering a significant rally on equity markets. The Dow Jones Index has hit record levels near 30,000 and is 1.24% up at the time of writing. The Nasdaq and S&P Indexes are 0.39% and 0.81% up respectively.

XAU/USD remains trapped between $1,850 and $1,900

Bullion remains moving sideways within a $50 range below $1,900, consolidating losses after last week’s slump from $1,960 highs. On the upside, the pair should break above $1,900 and $1,910 psychological level and the confluence of the 50 and 100-day SMAS to ease bearish momentum and return towards $1,960 (intra-day high) and $1,995 (September 1 high).

On the contrary, further decline below $1,850 (later-September lows) would increase bearish pressure and might drive the pair towards  $1,795 (mid-July lows) and finally $1,760, the 50% Fibonacci Retracement of the March – July rally.

Technical levels to watch

XAU/USD

Overview
Today last price 1886.32
Today Daily Change -1.90
Today Daily Change % -0.10
Today daily open 1888.22
 
Trends
Daily SMA20 1897.41
Daily SMA50 1906.15
Daily SMA100 1904.71
Daily SMA200 1786.34
 
Levels
Previous Daily High 1896.88
Previous Daily Low 1874.06
Previous Weekly High 1965.58
Previous Weekly Low 1850.56
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1888.16
Daily Fibonacci 61.8% 1882.78
Daily Pivot Point S1 1875.89
Daily Pivot Point S2 1863.57
Daily Pivot Point S3 1853.07
Daily Pivot Point R1 1898.71
Daily Pivot Point R2 1909.21
Daily Pivot Point R3 1921.53

 

 

 

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