Gold Price Analysis: XAU/USD erases gains despite dollar’s weakness

• XAU/USD spiked lower to $1823 and then rebounded.
• The rally from monthly lows remains in place, momentum eases.

Gold pulled back from weekly highs and dropped to $1823/oz, reaching a fresh daily low. It then rebounded, and as of writing, it trades at $1830, around the same level it closed on Wednesday.

The rally in XAU/USD from multi-month lows appears to be losing strength even as the US dollar tumbles across the board. The DXY dropped to 90.48, the lowest level in two years.

The area around $1845, slightly below the $1850 level that was a key support prior to the sell-off to $1765, capped the upside. The band $1845/50 is a key resistance that if broken, should clear the way to more gains.

On the downside, now $1820 is the immediate support followed by $1800.  A slide of XAU/USD below $1800 would add pressure, leaving the metal vulnerable to more losses.

Technical levels