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XAU / USD at four-month lows, testing $ 1,800 level

  • Gold finds support, for now, at $ 1,800.
  • The US dollar remains under pressure amid appetite for risk.

The XAU / USD it is falling for the second day in a row extending the correction from record levels. It recently bottomed at $ 1,800 / oz, the lowest level since mid-July. The area around $ 1,800 capped the decline for now, as bearish pressure is still elevated.

At time of writing, the XAU / USD sits at $ 1,805 losing almost $ 70 from the level it was at the beginning of the week. Gold remains under pressure amid appetite for risk, following positive news about COVID-19 vaccines and the US presidential transition.

In addition, economic data from the United States contributes to the decline in gold. On Monday, the Markit PMI report triggered a strong rally in the US dollar and pushed the metal below $ 1,850, leaving it vulnerable to further losses.

Bearish momentum remains intact in gold, but $ 1,800 may offer support; so far it stayed after being tested several times during the last hours. A break to the downside could generate more volatility. The next strong supports could be seen at $ 1,785 and $ 1,750. On the upside, now $ 1,820 is immediate resistance followed by $ 1,850.

Technical levels

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