Gold Price News and Forecast: XAU/USD continues to consolidate

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD pierces $1,940 on the break of immediate falling channel

Gold prices rise to $1,940.52, up 0.28% on a day, during the early Monday. The bullion recently flashed the intraday high of $1,940.98 after breaking a downward sloping trend channel formation from Thursday. The up-move also gains support from bullish MACD. As a result, the quote’s run-up to 200-HMA and 50% Fibonacci retracement of August 26 to September 01 upside, near $,1947/49, is more likely.

However, a sustained break of $1,949, also clearing the $1,950 round-figures, will enable the bulls to challenge the $1,977 and $2,000 psychological benchmark. Alternatively, the commodity’s downside break of the channel’s upper line, at $1,936, will be followed by $1,930 to challenge the short-term declines.

During the quote’s further weakness past-$1,930, the channel’s support line near $1,912 and August 27 low around $1,910 may offer intermediate halts ahead of recalling $1,900 on the charts.

Asia eases into the new week

Gold had another sideways day on Friday, finishing the session just 0.15% higher at $1934.00 an ounce. Most pleasingly for gold bulls, the yellow metal weathered the storm of a higher US Dollar and higher US yields. Gold has a clearly denoted support zone now between $1900.00 and !920.00 an ounce. What is clear is that gold continues to find plenty of willing buyers on dips to the $1930.00 region, and that investors are content to wait for those price dips, and not chase prices higher.

Having said that, a deeper correction in gold prices cannot be entirely ruled out, especially if the US Dollar short squeeze on currency markets finds renewed momentum this week. A failure of $1900.00 an ounce targets a retest of the August lows at $1863.00 an ounce, followed by the 100-DMA at $1815.00 an ounce. Daily resistance remains at $2000.00 an ounce.

EUR/USD hits fresh 2026 lows near 1.1570

EUR/USD adds to Monday’s heavy losses and reaches new yearly lows around 1.1570 on Tuesday. The pair’s deep pullback comes as the US Dollar extend its strong bounce, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold meets buyers around $5,000, remains under pressure

Gold comes under renewed and marked selling pressure on Tuesday, dangerously approaching the critical $5,000 mark per troy ounce, reversing at the same time four consecutive daily advances. The yellow metal’s bearish tone comes on the back of the increasing demand for the Greenback and investors’ repricing of Fed rate cuts.