Update: Gold (XAU/USD) fades bounce off intraday low, down 0.52% on a day around $1,778, as European traders brace for Thursday’s bell.

The yellow metal prints the biggest daily losses since the August 09 slump as the market sentiment sours amid coronavirus fears. Also favoring the gold sellers could be the Fed tapering woes and chatters over growth figures, raised by global banks and rating agencies, as Delta covid strain firm-up the grips.

Additionally weighing on the commodity are the US dollar gains. That said, the US Dollar Index (DXY) jumps to the nine-month high as the market’s risk-off mood joins a technical breakout.

Looking forward, gold traders need to keep their eyes on the virus updates and GDP, as well as tapering, related headlines for fresh impulse. Also important are the US Jobless Claims for the week ended on August 13, expected 363K versus 375K and the Philadelphia Fed Manufacturing Survey for August, forecast 23 versus 21.9 prior.


Gold price is pressurizing lows near $1780, looking for a sustained break below the round number to extend the downside towards the $1750 support area. The bearish sentiment grips gold price, as the US dollar holds the higher ground amid a double booster shot.

The July Fed meeting minutes showed that the officials discussed tapering plans before the end of this year, which gave a shot in the arm for the dollar optimists.

Meanwhile, growing fears over the Delta covid variant spread weighs on the market mood, bolstering the safe-haven demand for the greenback.

Looking ahead, amid a lack of relevant US economic news, the covid updates and the dynamics in the dollar will continue to have a significant impact on gold price. Hawkish Fed expectations will likely keep gold bulls on the defensive.

However, the risk-off trading in the global stocks combined with weaker Treasury could likely offer some reprieve to gold bulls.

Gold Price Chart: Daily

Looking at gold’s daily chart, the price turned south after having failed to find acceptance above the critical short-term resistance at 21-Daily Moving Average (DMA) of $1788.

The bears now look to take out Wednesday’s low of $1777 to flex their muscles towards the August 16 low of $1770.

Further south, the $1750 psychological support could come into play should the downside accentuate.

The 14-day Relative Strength Index (RSI) has changed its course and re-entered the bearish territory, backing a potential move lower.

On the upside, daily closing above the 21-DMA is critical to reviving gold’s recovery momentum from five-month troughs.

The bulls will then battle the bearish 50-DMA at $1795. However, only a sustained break above the $1800 mark could negate the near-term downside bias.

The level to beat for gold bulls is at the 100-DMA resistance line of $1808.

Gold Price: Additional levels to watch


Today last price 1781.02
Today Daily Change -6.70
Today Daily Change % -0.37
Today daily open 1787.72
Daily SMA20 1788.18
Daily SMA50 1797.9
Daily SMA100 1807.43
Daily SMA200 1813
Previous Daily High 1793.83
Previous Daily Low 1777.45
Previous Weekly High 1780.06
Previous Weekly Low 1687.78
Previous Monthly High 1834.17
Previous Monthly Low 1765.74
Daily Fibonacci 38.2% 1787.57
Daily Fibonacci 61.8% 1783.71
Daily Pivot Point S1 1778.84
Daily Pivot Point S2 1769.95
Daily Pivot Point S3 1762.46
Daily Pivot Point R1 1795.22
Daily Pivot Point R2 1802.71
Daily Pivot Point R3 1811.6



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD eases below 0.7100 amid cautious optimism

AUD/USD eases below 0.7100 amid cautious optimism

AUD/USD grinds higher towards 0.7100 as investors assess the latest comments from the new Australian PM Albanese. Surging covid cases in Beijing revive lockdown concerns. The aussie soared in early Asia amid a change in the Australian political scenario. 


EUR/USD: Bullish grind towards 1.0600 stays intact

EUR/USD: Bullish grind towards 1.0600 stays intact

EUR/USD retreats from intraday high within an immediate trend widening pattern. Sustained trading beyond 200-HMA, firmer RSI keeps buyers hopeful. One-week-old ascending trend line adds to the upside filters before the monthly high.


Gold bulls approach $1,860 hurdle on firmer sentiment, softer US dollar

Gold bulls approach $1,860 hurdle on firmer sentiment, softer US dollar

Gold picks up bids towards an intraday high as bulls benefit from the downbeat US dollar, as well as a firmer mood, during a quiet Asian session on Monday. The precious metal snapped a four-week downtrend while bouncing off the two-year low at the latest.

Gold News

Three reasons why DOGE price will not be back above $0.17 anytime soon

Three reasons why DOGE price will not be back above $0.17 anytime soon

Dogecoin price is at the cusp of saying goodbye to $0.10 as the price is set to drop another leg lower in the coming week after DOGE price consolidated below that same $0.10. With such a move, losses would sum up to 55% of depreciation.

Read more

Week Ahead on Wall Street: Options expiry to the rescue on Friday but its official, we are in a bear market

Week Ahead on Wall Street: Options expiry to the rescue on Friday but its official, we are in a bear market

Another wild and volatile week which seems to be the tone so far for 2022. Wild swings throughout the week were mirrored on Friday with wild intraday swings. The S&P 500 did manage to slide into a bear market territory on Friday.

Read more