Today, the precious metal, gold is recovering to $1200. However, will it sustain the bounce above that barrier? Will the yellow metal continue to fall? Gain insight into the following analysis.
17 September, OctaFX – Gold prices on Comex are seen struggling to extend their recovery beyond the $ 1200 barrier, as the bulls lack vigor ahead of the looming US tariffs announcement on China, which is likely to refuel the latest US dollar pull back across its main competitors.
Gold Recovers to $1200
The yellow metal breathed a sigh of relief in Asia and attempted a tepid recovery from $ 1197.50 lows, as the US dollar paused Friday’s rally and entered a consolidative mode near two-day tops of 95.00.
Moreover, the renewed weakness seen around the Treasury yields across the curve amid risk-off market environment, sparked by the renewed US-China trade concerns, also helped cushion the downside in gold.
Looking ahead, all eyes remain on the US tariffs announcement on an additional $ 200 billion Chinese imports for fresh dollar trades.
Gold Technical Levels
On Friday, the XAUUSD pair dropped sharply from a high of 1208 to a low of 1192. In the Asian session today, the pair attempted to move up but remained at these lows. In recent weeks, the pair has traded within the narrow channel of 1187 and 1213. If the pair crosses the support of 1187, there is a likelihood that it will continue to fall, potentially to the 1150 support.
Resistances: $ 1210 (round figure), $ 1213.80 (2-week tops), $ 1217 (Aug 28 high).
Supports: $ 1197.50 (daily low), $ 1190.40 (Sept 11 low), $ 1185.30 (Aug 24 low).
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