Gold Price Analysis: XAU/USD confronts 100-HMA barrier, as $1800 beckons once again

  • 100-HMA testing bullish commitments, as $1800 remains in sight.
  • XAU/USD continues to benefit from broad US dollar weakness.
  • US Durable Good data eyed heading into the Fed week.

Gold (XAU/USD) is looking to extend the recovery from Friday’s low of $1770, as the bulls once again keep their sight on the $1800 barrier.

The persistent downbeat tone around the US dollar continues to benefit gold while a cautious market mood also renders supportive of the yellow metal.

For further trading impetus, the XAU traders eagerly await the US Durable Good data due later this Monday but the main event risk for the week remains the FOMC decision.

From a near-term technical perspective, gold bulls will extend control on a sustained break above the 100-hourly moving average (HMA) at $1783, which now acts as a powerful resistance.

Gold Price Chart: Hourly  

The next stop for the buyers is seen at the mildly bearish 50-HMA of $1785. Further up, a critical upside barrier around $1798 will be back in play.

That level is the confluence of Friday’s high and two-month highs.

The Relative Strength Index (RSI) has turned flat but holds just above the midline, favoring the bullish traders.

To the downside, if the 21-HMA support at $1780 fails to offer any cushion, the spot could fall back towards the daily lows of $1775.

Further south, the intersection of the ascending 200-HMA and Friday’s low around $1770 could be the last line of defense for the optimists.  

Gold: Additional levels

XAU/USD

”Source From fxstreet”

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