Gold Price Analysis: XAU/USD sideways around $1,940/oz with a bearish bias


  • Gold flat for the day, consolidating Wednesday's slide, supported by a steady US dollar.
  • XAU/USD found support above $1,920 and rebounded toward $1,955.

Gold prices are moving sideways on Thursday, hovering around Wednesday's closing price at $1,940/oz. Price bottomed at $1,923, the lowest in a week but it quickly rose back to the current range between the $1,925 area and $1,950,

On Wednesday, XAU/USD started to move to the downside and accelerated after the release of the FOMC minutes. The bearish pressure eased during the European session on Thursday after the recovery of the greenback took a pause.

The US Dollar Index is flat for the day. Earlier it peaked at 93.20, the highest level in almost a week, before pulling back to the 93.00 zone. The Dow Jones is trimming losses, and the Nasdaq is now in positive territory. The recover in risk sentiment weighs on USD. Economic data from the US showed initial jobless claims rose back above a million and a slide in the Philly Fed, below expectations.

Gold levels to watch

In the short-term, immediate resistance in XAU/USD is seen at $1,955 (daily high) followed by $1,965 and then $1,980.

The bearish bias in the very short-term appears to be in place as long as price holds below $1,965/oz. A break under $1,920 should open the doors for an extension of the slide targeting the $1,900 area. If the decline continues, the next support stands at $1,875 that protects last week low at $1,861.

XAU/USD

Overview
Today last price 1938.69
Today Daily Change 9.53
Today Daily Change % 0.49
Today daily open 1929.16
 
Trends
Daily SMA20 1969.87
Daily SMA50 1855.01
Daily SMA100 1779.49
Daily SMA200 1662.04
 
Levels
Previous Daily High 2006.73
Previous Daily Low 1924.83
Previous Weekly High 2049.96
Previous Weekly Low 1863.24
Previous Monthly High 1984.8
Previous Monthly Low 1757.7
Daily Fibonacci 38.2% 1956.12
Daily Fibonacci 61.8% 1975.44
Daily Pivot Point S1 1900.42
Daily Pivot Point S2 1871.67
Daily Pivot Point S3 1818.52
Daily Pivot Point R1 1982.32
Daily Pivot Point R2 2035.47
Daily Pivot Point R3 2064.22

 

 

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