Gold Price Analysis: XAU/USD breaks above $1880 after a visit to $1871
- Wall Street turns negative, recovery of the US dollar eases.
- Gold remains sideways, now testing level above range.
Gold is hovering around $1885, posting a gain of 0.65% on a quiet day. The yellow metal is breaking to the upside, a trading range, following a quick drop to $1871. It rebounded rapidly back to the $1880 zone.
The move lower took place as Wall Street indexes turned negative. The Dow Jones is now down by 0.05%; earlier, it hit record highs. The US dollar recovered ground with the slide in stocks. The DXY rose back to 90.00; it is still down 0.35% for the day but off lows.
From a technical perspective, XAU/USD is moving sideways to bullish. It made a false breakout of an uptrend line with the spike to $1871. As of writing, it is testing levels above the short-term range between $1875 and $1883. In the daily chart, the direction is unclear. The December rally found resistance at $1900.
It is a shortened week for financial markets. It is already having an impact on volume. The correlation between the FX market, stocks, and gold are weak on Tuesday.
Technical levels
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