Gold rose on Monday, recovering most of Friday’s losses. Short-term outlook remains neutral, with price unable to move off $1200.
Gold rose on Monday, boosted by a decline in the US dollar. The metal peaked at $1,204.70/oz and then pulled back. Near the end of the day was hovering around $1200, far from the highs but still positive for the day, with a gain of $8.
The greenback came under pressure at the beginning of the week. The DXY fell from 94.95 to 94.44 and it was about to post the lowest close since July, affected by escalating tensions between the US and China. Reports suggested that US President Trump was about to announce more tariffs to Chinese goods after WS close.
Technical outlook
XAU/USD traded inside Friday's range, but fell short of changing its negative bias, as in the daily chart, it settled around a flat 20-day moving average, below the larger ones, while technical indicators aim higher but still below their midlines, explained Valeria Bednarik, Chief Analyst at FXStreet.
According to her, the 4 hours chart, shows the price stick around a congestion of directionless moving averages, with Momentum aiming higher right below its mid-line, and the RSI losing upward strength, leaving a neutral stance.
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