Gold Price Analysis — September 7

Gold (XAU/USD) renewed its daily lows around the $1924 level in the early European session on Monday. However, there hasn’t been any significant follow-through selling.

The yellow metal could not take advantage of the recent uptick in the early Asian session today, instead found fresh supply around the $1941 level. This was most likely due to the decent demand in the US dollar (DXY) today. Following Friday’s mixed US monthly jobs report, the dollar has resumed on a strong upwards momentum on Monday, exerting additional pressure on the dollar-denominated commodity.

However, the ever-present worry over the global economic recovery amid the still-increasing Coronavirus cases has lent some support to gold’s safe-haven appeal. Also, given that the US markets will be closed today as the country celebrates its Labor Day holiday, there will be little or no significant moves in the market, which could help the precious metal’s near-term recovery.

Gold (XAU) Value Forecast — September 7

XAU/USD Major Bias: Bearish

Supply Levels: $1940, $1960, and $1983

Demand Levels: $1923, $1909, and $1900

Gold spent most of last week without any significant momentum. Based on our 4-hour chart, we can see that the commodity has been in a consolidation range between the $1939 resistance and the $1923 key support.

At press time, the precious metal is trading at $1,928, slightly below our prevailing trendline. This could be dangerous for gold bulls as the trendline has served as significant bullish support for a long while now.

Gold has to struggle to climb back above this level to preserve its bullishness. Failure to do so could trigger a slide to the $1900 mark and a revisit of the $1862 area.

On the flip side, reemergence above the trendline could send gold back into the $1983-60 pivot area quickly.

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