Gold Price Analysis: XAU/USD under pressure, hits weekly lows but remains above $1910
- As the US dollar resumes the upside, pressure mounts on gold.
- XAU/USD drops to $1,916/oz, still remains above critical support area.
Gold prices peaked immediately after the release of the US employment report at $1,948/oz but then reversed quickly as the US dollar resumed the upside across the board. XAU/USD bottomed at $1,916, the lowest level in a week.
As of writing, gold trades at $1,925 moving off lows but still showing a bearish bias. While above $1,910/15 losses seem limited, a break below would expose the $1,900 area, potentially triggering more volatility. The next target is seen at the August low at $1,960.
The bias continues to point to the downside. A recovery above $1,960 would alleviate the pressure while a daily close above $1,975 could suggest more gains ahead and a test of $2,000.
The greenback is up on Friday against G10 currencies and equity prices in Wall Street are falling again sharply for the second day in a row. The DXY rose to 93.20, hitting a fresh weekly high.
Gold technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
