Gold Price (XAU/USD) Reclaims 1800 Only If 1789 Yields

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Written By: Eno Ikenna Eteng
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    Summary:
  • Gold price (XAU/USD) shoots upwards after consumer sentiment in the US hits a 10-year low, pressurizing the greenback in the process.

Gold price (XAU/USD) has managed to consolidate on Friday’s gains after dismal consumer sentiment data weighed on the greenback in New York trading. The University of Michigan’s Consumer Sentiment Index fell from 81.2 in July to 70.2 in August, approaching lows not seen in nearly a decade.

Gold’s gold price is now trading 1.47% higher as of writing but still looks set to end the week lower after Tuesday’s flash crash. The crash and subsequent recovery followed continued selling pressure on the XAU/USD pair following the stellar NFP numbers.

Technical Levels to Watch

With the active daily candle breaching the 1763.30 resistance level, the gold price targets the 1789.49 barrier. 1800.00 and 1815.20 only become visible if the bulls overcome 1789.49. 

On the other hand, if the 1763.30 is breached to the downside, 1741.01 becomes the new target. 1719.13 and 1699.43 are additional targets to the south, with 1680.59 only coming into the picture on an extended decline in the XAU/USD pair.

Gold Price (XAU/USD): Daily Chart

Written By: Eno Ikenna Eteng

Eno's work as a technical analyst and author since 2009 is well recognized in the industry and on several freelance platforms. He is also a member of the prestigious UK Society of Technical Analysts and a top-ranked participant in the Basic Investment Banking and Asset Management simulations with Amplify Trading.

Published by
Written By: Eno Ikenna Eteng