Home Gold Price Analysis: XAU/USD erases gains despite dollar’s weakness
FXStreet News

Gold Price Analysis: XAU/USD erases gains despite dollar’s weakness

  • XAU/USD spiked lower to $1823 and then rebounded.
  • The rally from monthly lows remains in place, momentum eases.

Gold pulled back from weekly highs and dropped to $1823/oz, reaching a fresh daily low. It then rebounded, and as of writing, it trades at $1830, around the same level it closed on Wednesday.

The rally in XAU/USD from multi-month lows appears to be losing strength even as the US dollar tumbles across the board. The DXY dropped to 90.48, the lowest level in two years.

The area around $1845, slightly below the $1850 level that was a key support prior to the sell-off to $1765, capped the upside. The band $1845/50 is a key resistance that if broken, should clear the way to more gains.

On the downside, now $1820 is the immediate support followed by $1800.  A slide of XAU/USD below $1800 would add pressure, leaving the metal vulnerable to more losses.

Technical levels

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.