You Can’t Keep Gold (XAU) Away from $2,000
Gold continues to return to the $2,000 level over an over again, which shows that at some point buyers will hold the price above it
Gold moved three times above $2,000 last month as buyers returned on deteriorating risk sentiment due to the banking crisis. Although they couldn’t hold the price above it and Gold retreated lower on Friday as USD bulls returned. On Monday morning Gold opened with a bearish gap lower, but the 100 100 SMA (green) held as support on the H4 chart.
The price of gold has rebounded from that moving average and is now approaching the psychological level of $2000 again, as it seems to draw the price over and over, which is a bullish signal. Despite failing to close below $1950 for three consecutive days, Chinese data showing a decline in Caixin PMI has affected the optimism surrounding the demand, as China is one of the largest importers of Gold. Although this is positive on the other hand, as it pushed trades towards safe havens.
The USD on the other hand, resumed last week’s downtrend, which has been helping Gold prices recover. Reports of Brazil, China, and India discussing dropping the US dollar for global trade and forex transactions have also contributed to the recent weakness in the USD and again, increasing the demand for a safe haven asset such as Gold.
The release of the ISM Manufacturing report from the US yesterday add to the volatility in the financial markets and the USD weakness. Gold got another push and it reached the $1,990 level, where it stalled. So, XAU/USD gained more than $40 from top to bottom yesterday.
Today we have the US JOLTS job openings numbers coming out later, which are expected to have some decent impact on the USD, as the FED is looking at employment numbers, as well as inflation figures. In any case, we are watching the price action around this level, and will try to pull a trade or two, depending on the sentiment, which you can follow on our forex signals page.
Gold XAU Live Chart
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