Home Gold Price Analysis: XAU/USD recovers from session lows, $2,015 is key support
FXStreet News

Gold Price Analysis: XAU/USD recovers from session lows, $2,015 is key support

  • Gold’s daily chart shows early signs of bearish reversal. 
  • A move below Friday’s low of $2,015 would confirm the trend change.

Gold is trading near $2,031 per ounce at press time, having put in a session low of $2,019 early Monday. 

The yellow metal created a bearish outside day candle on Friday, as prices clocked a high and low of $2,075 and $2,015, respectively, and ended the day with a 1.39% drop, engulfing Thursday’s price gain. 

The bearish outside day is widely taken to represent a bullish-to-bearish trend change when it appears after a notable rally. In this case, the candlestick has appeared at record highs and after a stellar 35% year-to-date gain. 

The trend change would be confirmed if the bulls fail to defend Friday’s low of $2,015. As such, Friday’s low is a key support to watch out for this week. 

Acceptance under $2,015 would imply an interim top has been made and open the doors for a stronger pullback to $,1981 (resistance-turned-support as per 4-hour chart). 

Friday’s bearish candle would be invalidated if prices rise above $2,075. However, with the 14-day relative strength index and slow stochastic reporting overbought conditions, a move below $2,015 looks more likely. 

Daily chart

Trend: Bearish

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.