Gold Price Analysis for August 17

Gold Price Analysis for August 17

Gold (XAU/USD) has recovered from an early dip to the $1,930 region, recording a $1,957 high in the early Asian session on Monday. However, it has failed to show any significant follow-through momentum.

The yellow metal has also failed to take full advantage of last week’s impressive bounce from a three-week low ($1,862) and has been in a consolidation range for a few trading sessions since then. The prevailing US dollar weakness was regarded as the major factor bolstering the dollar-denominated commodity.

The tensions surrounding the next round of fiscal stimulus measures in the US kept USD buyers in a defensive stance through the early trading hours on Monday. This coupled with the weak bias around the US Treasury bond yields extended extra support to the non-yielding metal.

However, the overall goodish risk sentiment in the global market has kept a lid on any further gains in gold. The global risk-on mood was bolstered by the hopes over a potential Coronavirus vaccine and the rescheduling of the US-China trade deal review, originally slated for Saturday.

Meanwhile, investors appear to be playing it safe with gold and are staying on the sidelines ahead of the FOMC meeting minutes release, scheduled for Wednesday. That said, volatility will likely be diminished in the near-term.

XAUUSD – Hourly Chart

Gold (XAU) Value Forecast — August 17

XAU/USD Major Bias: Sideways

Supply Levels: $1,960, $1,983, and $2,000

Demand Levels: $1,930, $1,916, and $1,900

Gold has resumed Monday with its consolidation from last week, trading between the $1,961 and $1,931 levels. Giving the poor condition of the dollar, gold will likely stage a recovery to the upside soon. Also, a mini trendline can be seen on the hourly chart, confirming that while we’re in a consolidation, the trend remains to the upside.

Meanwhile, our MACD indicator shows that gold is in neutral conditions, making it adequate for a bullish trend to play out.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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