Gold Price Analysis: XAU/USD retreats after hitting one-week highs above $1900
- Gold flat for the day, still testing the $1,900 zone.
- Weaker US dollar and risk appetite support upside in metals.
The recovery in gold after last week sharp decline continues to be capped by the $1,900/oz area. Recently, boosted by a slide of the US dollar, XAU/USD rose to $1,902 reaching the highest level in a week, but it failed to hold above $1,900 and pulled back.
The DXY fell to the lowest in a week under 93.70. In Wall Street, equity prices are sharply higher the day after the first presidential debate. The Dow Jones is rising 1.80%, and the S&P 500 climbs 1.50%. The combination of a weaker US dollar and risk appetite helped gold move off lows, but metals are in negative territory for the day.
XAU/USD is trading at $1,895, holding a bullish intraday tone. In order to clear the way to more gains, it needs to consolidate above $1,900. The key support to the very short-term bullish bias is seen at the 20-SMA in the 4-hour chart around $1,880 and also at $1,875. Below the last one, another test of the $1,850 area seems likely.
XAU/USD 4-hour chart
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.
