XAUUSD @ 40.75 – Support/Resistance analysis: Gold Price Forecast: extends slide to fresh weekly low near $1,770
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- Gold fell sharply at the beginning of the week.
- Broad-based dollar strength weighs heavily on XAU/USD on Monday.
- Markets remain risk-averse amid China slowdown, escalating geopolitical tensions.
The pair currently trades last at 40.75.
The previous day high was 1804.04 while the previous day low was 1784.95. The daily 38.2% Fib levels comes at 1796.75, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1792.24, expected to provide resistance.
Gold started the new week under heavy bearish pressure and dropped to a fresh weekly low of $1,773. As of writing, XAU/USD was trading at $1,775, where it was down 1.5% on a daily basis.
The disappointing macroeconomic data releases from China reminded investors that a slowdown in the world’s second-biggest economy could significantly weigh on the demand outlook for the yellow metal.
Additionally, escalating geopolitical tensions with US lawmakers visiting Taiwan and China continuing its military exercises around the island forced investors to seek refuge at the start of the week. The dollar gathered strength amid risk aversion and the US Dollar Index (DXY) managed to build on Friday’s recovery gains. As of writing, the DXY was up 0.6% on the day at 106.29.
Looking ahead, the Federal Reserve Bank of New York’s Empire State Manufacturing Survey will be featured in the US economic docket. The NAHB Housing Market Index for August will also be looked upon for fresh impetus.
As of writing, US stock index futures were down between 0.3% and 0.5%. Unless these data allow risk flows to return to markets, gold could find it difficult to stage a rebound in the second half of the day.
Technical Levels: Supports and Resistances
XAUUSD currently trading at 1773.11 at the time of writing. Pair opened at 1802.11 and is trading with a change of -1.61 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1773.11 |
| 1 | Today Daily Change | -29.00 |
| 2 | Today Daily Change % | -1.61 |
| 3 | Today daily open | 1802.11 |
The pair is trading above its 20 Daily moving average @ 1754.49, below its 50 Daily moving average @ 1783.14 , below its 100 Daily moving average @ 1837.71 and below its 200 Daily moving average @ 1842.1
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1754.49 |
| 1 | Daily SMA50 | 1783.14 |
| 2 | Daily SMA100 | 1837.71 |
| 3 | Daily SMA200 | 1842.10 |
The previous day high was 1804.04 while the previous day low was 1784.95. The daily 38.2% Fib levels comes at 1796.75, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1792.24, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1790.03, 1777.94, 1770.94
- Pivot resistance is noted at 1809.12, 1816.12, 1828.21
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1804.04 |
| Previous Daily Low | 1784.95 |
| Previous Weekly High | 1807.93 |
| Previous Weekly Low | 1770.90 |
| Previous Monthly High | 1814.37 |
| Previous Monthly Low | 1680.91 |
| Daily Fibonacci 38.2% | 1796.75 |
| Daily Fibonacci 61.8% | 1792.24 |
| Daily Pivot Point S1 | 1790.03 |
| Daily Pivot Point S2 | 1777.94 |
| Daily Pivot Point S3 | 1770.94 |
| Daily Pivot Point R1 | 1809.12 |
| Daily Pivot Point R2 | 1816.12 |
| Daily Pivot Point R3 | 1828.21 |
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