The price of gold, represented as XAUUSD trading at 1,901.50, has increased, but it is facing difficulty in surpassing the $1,900 level.

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• Gold price trades higher but struggles to surpass the $1,900 mark.

The pair currently trades last at 1901.50.

The previous day high was 1904.51 while the previous day low was 1889.14. The daily 38.2% Fib levels comes at 1898.64, expected to provide support. Similarly, the daily 61.8% fib level is at 1895.01, expected to provide support.

Gold price marginally extends its gains and successfully continues the winning streak for the third day. XAU/USD hovers around $1,900 per troy ounce during the Asian session on Wednesday, showing signs of recovery following four consecutive weeks of losses despite a firmer US Dollar (USD).

However, elevated risk aversion and concerns regarding China’s economy, are exerting pressure on the price of Gold. These elements could potentially impact the overall trajectory of Gold Prices.

Investors’ attention will be on China’s economic woes and financial toil, any signs of further development in fiscal stimulus will be cheered up. According to Reuters, during the BRICS summit in South Africa on Tuesday, Chinese President Xi Jinping said that China’s economy was resilient and that the fundamentals for its long-term growth remained unchanged.

The US Dollar Index (DXY), which measures the performance of the Greenback against the six major currencies, showed resilience on Tuesday and ended the day with a winning point. At the time of writing, the DXY is hovering around 103.50. The decrease in US Treasury yields and downbeat US Existing Home Sales could put the Greenback under pressure.

As said, data released on Tuesday revealed that US Existing Home Sales declined 2.2% in July to an annual rate of 4.07M, against the market consensus of 4.15M. The Richmond Fed Manufacturing Index improved in August from -9 to -7, in line with market expectations. The upcoming Jackson Hole annual symposium holds significant importance, primarily due to the speech by Fed Chair Powell scheduled for Friday.

Traders now look to the US economic docket, featuring preliminary S&P Global Manufacturing PMI for August and New Home Sales Change for July, later during the North American session. These datasets could provide insights, helping for placing fresh bets on the yellow metal.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1901.62 at the time of writing. Pair opened at 1897.48 and is trading with a change of 0.22 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1923.65, 50 SMA 1932.96, 100 SMA @ 1961.05 and 200 SMA @ 1907.98.

The previous day high was 1904.51 while the previous day low was 1889.14. The daily 38.2% Fib levels comes at 1898.64, expected to provide support. Similarly, the daily 61.8% fib level is at 1895.01, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1889.58, 1881.67, 1874.21
• Pivot resistance is noted at 1904.95, 1912.41, 1920.32

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