Gold Price Analysis: XAU/USD surrenders intraday gains, back around $1,860 level
- Gold struggled to capitalize on its intraday positive move to levels beyond the $1,870 level.
- President Trump refused to sign a US$ 900 billion stimulus package approved by US Congress
- Recent price action showed a doji with tests of both support and resistance, highlighting the potential for a near-term break.
Gold surrendered its intraday gains to the $1,872 region and has now dropped to the lower end of its daily trading range. The commodity was last seen hovering around the $1,860 region.
GOLD PRICES: BULLISH MOVE CONTINUES
Since marking a four-month-low in early-December, buyers have continued to carve a series of higher-highs and higher-lows. Last week was especially important for that backdrop as buyers put in multiple defenses of support around $1,825.
The $1,900 round figure mark which coincides with the upper boundary of a bearish channel which is an immediate resistance. Acceptance above could open doorways to next barrier which resides at $1,930.
On the flip side, the recent doji formations highlight indecision, and the fact that this printed after a couple of weeks of strength indicates that there could, possibly, be a change direction. Following near-term support around the 50% marker of the June-August major move, as sellers taking this level out would be the next step to a deeper bearish move.
Bears will then eye a sustained move below $1,860 if the level fails to hold, the intersection of the Fibonacci 61.8% one-month to accelerate the downward pressure. Further south, the next relevant support is aligned at $1,776 which is the monthly open price.
