Gold Price Analysis: XAU/USD drops further and approaches $1,900/oz

The ounce troy of the precious metal is suffering another bout of dollar strength and is gradually grinding lower to the vicinity of the $1,900 mark on turnaround Tuesday.

In fact, the greenback is posting decent gains above the 93.00 mark when tracked by the US Dollar Index (DXY), extending the rebound from last week’s +2-year lows in the 91.80/75 band.

However, the omnipresent US-China trade effervescence coupled with rising cautiousness ahead of the ECB event (Thursday) and Brexit uncertainty could keep further pullbacks in Gold somewhat limited for the time being.

The speculative community, in the meantime, pushed net longs in the yellow metal to multi-week peaks during the week ended on September 1 and according to the CFTC Positioning Report.

Gold key levels

As of writing Gold is losing 0.74% at $1,915.15 and faces the next support at $1,895.93 (55-day SMA) seconded by $1,873.01 (50% Fibo of the June-August rally) and then $1,863.27 (monthly low Aug.12). On the other hand, a breakout of $1,992.63 (monthly high Sep.1) would expose $2,015.65 (high Aug.18) and then $2,075.14 (2020 high Aug.7).