Gold Struggles Below $2,000 Barrier, Chinese PMI Data Awaited
Updated
Gold recently experienced a downward correction following last week's surge, dropping to $1,990 on Monday. However, due to fresh selling pressure on the US Dollar, XAU/USD reversed its course, reaching the $2,000 mark and recovering most of its daily losses. Although trading slightly lower, the daily chart indicates a swift rebound from the intraday low of $1,990.93, suggesting buyers remain active. The Simple Moving Average (SMA) 20 has sharply turned upwards, staying below longer-term moving averages. Technical indicators are still in overbought territory, showing a slight decline from recent highs but not confirming a significant downward move.
In the short term and on the 4-hour chart, the risk is on the rise, although the downward momentum is slowing down. XAU/USD is trading above all its moving averages, with SMA 20 leading the way, providing intraday support. However, its Momentum indicator slides within positive levels, while the Relative Strength Index (RSI) consolidates around 60.
Support Levels: $1,990.90, $1,976.85, $1,962.10
Resistance Levels: $2,009.50, $2,023.70, $2,040.20
In the short term and on the 4-hour chart, the risk is on the rise, although the downward momentum is slowing down. XAU/USD is trading above all its moving averages, with SMA 20 leading the way, providing intraday support. However, its Momentum indicator slides within positive levels, while the Relative Strength Index (RSI) consolidates around 60.
Support Levels: $1,990.90, $1,976.85, $1,962.10
Resistance Levels: $2,009.50, $2,023.70, $2,040.20
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