The Gold Price (XAU/USD) is grappling with maintaining its first daily gains in six days, descending to its lowest level in over a week. Market participants are eagerly seeking additional signals in order to reaffirm their pessimistic stance on the precious metal. The XAU/USD traders are reassessing the latest United States (US) data and the Federal Reserve (Fed) hints, all while hoping for a soft landing in the US despite the prospect of higher interest rates. This sentiment is intertwined with concerns of an economic slowdown in other major countries, leading to a bolstered US Dollar and downward pressure on the Gold Price.
Furthermore, grave concerns surrounding China, one of the largest consumers of gold globally, are compounded by the ongoing Sino-American trade disputes and strong yields, which present additional challenges for the XAU/USD’s recovery.
With that being said, the upcoming Federal Reserve talks are expected to serve as key catalysts, particularly given the one-week blackout period for European Central Bank (ECB) policymakers and the potential improvement in second-tier US employment data.
Gold Price: Crucial Levels to Monitor
According to our Technical Confluence indicator, the Gold Price is nudging the lower end of the short-term trading range, gradually diminishing the bearish sentiment following a five-day losing streak. However, the XAU/USD remains within a sturdy trading range between $1,935 and $1,915, despite recent declines.
Notably, the middle band of the one-day Bollinger bands aligns with the one-month Fibonacci 38.2% level, firmly establishing $1,915 as a significant support level.
Conversely, the one-month Fibonacci 61.8% level indicates that $1,935 serves as a crucial resistance hurdle for buyers.
Additionally, the middle band of the four-hour (4H) Bollinger bands converges with the 50-day moving average (DMA), accentuating the $1,930-31 zone as an added barrier to the upside.
Similarly, the 200-day moving average (DMA) combines with the Pivot Point one-week S1 and the one-day Fibonacci 23.6% level, marking $1,918 as immediate support.
For further analysis, the one-week Fibonacci 38.2% level and the one-day Fibonacci 161.8% level act as resistance filters near $1,938 before guiding Gold buyers toward the $1,950 obstacle.
Meanwhile, the one-month Fibonacci 23.6% level poses as a deterrent for XAU/USD sellers around $1,905, redirecting them towards the Pivot Point one-week S2 and the one-month S1 at approximately $1,895.