Gold Price Analysis: XAU/USD looks directionless around $1,900/oz
- Gold alternates gains with losses around the $1,900 area.
- The 100-day SMA near $1,870 holds the monthly downside so far.
- Inconclusive price action in the dollar weighs on the yellow metal.
Gold prices trade without a clear direction at the end of the week, although they manage well to keep business above/around the key $1,900 mark per ounce.
In fact, gold is reversing two consecutive weeks with gains after bottoming out in the area of multi-week lows near $1,850 in mid-September. On the other hand, a strong barrier has turned up around $1,930.
The precious metal, in the meantime, continues to look to developments from the US political arena, particularly headlines around a potential stimulus package to fight the second wave of the coronavirus pandemic, which is already hurting the prospects of global recovery.
The better mood in the greenback throughout this week has been also weighing on the demand for the safe haven metal. The dollar, however, failed to extend the rally further and faltered ahead of the key 94.00 barrier when gauged by the US Dollar Index (DXY).
Gold key levels
As of writing Gold is losing 0.11% at $1,906.59 and faces the next support at $1,882.60 (weekly low Oct.14) followed by $1,873.05 (monthly low Oct.7) and then $1,848.66 (monthly low Sep.24). On the upside, a breakout of $1,933.28 (monthly high Oct.12) would expose $1992,63 (monthly high Sep1) and finally $2,015.65 (high Aug.18).