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Gold Price Forecast: XAU/USD faces strong resistance at $1730 zone

  • Gold hits new highs but then pulls back.
  • Confirmation above $1,730 would enable further upside in the short term.
  • Weakness of the dollar, rise in stocks and stability in Treasuries support XAUUSD.

Gold is rising on Monday although it trimmed gains in the last few hours. XAUUSD rallied to $1,733, reaching the highest since August 30, but then reversed direction and pulled back below $1,725.

The short-term bias remains bullish in favor of the yellow metal, but it is facing strong resistance around the $1730 area. In addition to being a key horizontal level, it is where the 20-day moving average is passing. A close clearly above would point to more upside.

If it fails with $1730, then weakness could return in line with the still dominant trend. A close below $1,690 would expose the key long-term support at $1,675, where the lows of the last two years are.

Better weather helps gold

Monday’s rise is the second day in a row. It has behind the weakness of the dollar and raise it in the equity markets. ANDl DXY is down 0.65%, retracing further from decade highs. Wall Street’s main indices are in the green, at daily highs.

The treasury bond yields they operate stable. The 10-year bond yields 3.28% and the 2-year bond yields 3.52%. On Tuesday, the US Consumer Price Index for August will be released, which is expected to have a strong impact on financial markets, including gold.

Technical levels

XAU/USD

Overview
Today last price 1729.17
Today Daily Change 12.35
Today Daily Change % 0.72
Today daily open 1716.82
trends
Daily SMA20 1734.78
Daily SMA50 1743.86
Daily SMA100 1795.67
Daily SMA200 1833.55
levels
Previous Daily High 1729.57
Previous Daily Low 1708.45
Previous Weekly High 1729.57
Previous Weekly Low 1691.47
Previous Monthly High 1807.93
Previous Monthly Low 1709.68
Daily Fibonacci 38.2% 1721.5
Daily Fibonacci 61.8% 1716.52
Daily Pivot Point S1 1706.99
Daily Pivot Point S2 1697.16
Daily Pivot Point S3 1685.87
Daily Pivot Point R1 1728.11
Daily Pivot Point R2 1739.4
Daily Pivot Point R3 1749.23

Source: Fx Street

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