Gold to Reach $1900 Again as It Remains in Limbo

Gold to Reach $1900 Again as It Remains in Limbo

Today was a slow day across markets as the US markets remain closed to observe the Labor Day holiday. Regardless, there appear to be some technical set-ups emerging around gold (XAU/USD).

The yellow metal remained within a narrow trading range throughout the day and was last spotted trading around $1928. Gold has traded in a ‘seesawed’ manner for the fourth consecutive session now. The Federal Reserve continues on its loose monetary policy, which may be the most crucial driver of the choppiness in gold.

This has given the US dollar a little boost, which has further caused stagnation for the dollar-denominated commodity. However, worries over the prospects of a sharp US economic recovery has extended further support for gold’s safe-haven status and has limited further declines. Investors appear to be unwilling to become aggressive at the moment considering the holiday-induced volatility thinning in the markets today.

XAUUSD 4-Hour Chart

Gold (XAU) Value Forecast — September 7

XAU/USD Major Bias: Bearish

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

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

Gold bulls remain in a fight for control, however, given the prevailing market conditions, a gold recovery doesn’t seem likely in the near-term.

The commodity also failed to rally back above the 4-month ascending trendline, widening its distance the longer it stays below.

Moving on, we have a confluence of indicators (100 and 50 SMA) around the $1950 level, signifying that that’s the level to beat in the near-term for bulls to get comfortable again is the $1950.

Regardless, it seems increasingly likely that we will see the $1900 mark soon and subsequently the $1862 August low if bulls fail to resuscitate the market.

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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