XAU/USD Price Update: Gold Holds Steady at $2,500 Amid Holiday in US and Canada
- Key Events This Week: US Employment Data and Bank of Canada Decision in Focus
- Gold Under Pressure: XAU/USD Hits Two-Week Low
Spot Gold is trading at $2,500 per troy ounce, remaining stable in the absence of trading activity due to the Labor Day holiday in the US and Canada. XAU/USD saw a dip to $2,489.92 earlier in the week, marking a two-week low before recovering slightly during European trading hours.
This week brings significant events, including the release of US employment data leading up to the Nonfarm Payrolls report on Friday, as well as the Bank of Canada’s monetary policy decision next Wednesday. Expectations are for the BoC to cut interest rates by 25 basis points following a previous rate cut.
Technical Analysis: Bearish Pressure Persists for XAU/USD
Looking at the daily chart, XAU/USD has shown a lower high and a lower low, indicating ongoing selling pressure. However, technical indicators remain in positive territory with slight bearish momentum, limiting downside potential. The pair is trading above all key moving averages, with the 20 SMA acting as dynamic support at $2,478.75.
In the short term, the 4-hour chart suggests further downside, with indicators pointing lower below their midlines. The pair is below the flat 20 SMA, while the 100 SMA offers support near the recent low.
Support Levels: $2,489.90, $2,475.70, $2,463.40
Resistance Levels: $2,507.40, $2,519.75, $2,531.60
Analysis:
Gold prices are holding steady at $2,500 amidst holiday lull in trading. The upcoming US employment data and Bank of Canada decision could impact XAU/USD movement. Technical indicators suggest bearish pressure persists, with key support and resistance levels identified for traders to watch.