The metal is further pressured by the rallying dollar amid risk aversion
Gold prices look relatively steady on Thursday after a three-day slide triggered by a stronger US dollar. During the previous session, the precious metal extended losses to the $1,915 area for the first time in more than a week. Earlier today, XAUUSD briefly fell to $1,916 before bouncing slightly into positive territory.
The bullion lacks the momentum to regain the directionless 55-DMA that deterred bulls earlier. Should the pressure reemerge any time soon, the bullion could threaten the 20- and 200-DMAs that converge around $1,915.
The US dollar continues its ascent, refreshing multi-month highs around the 105.00 figure as risk-off sentiment dominates global financial markets these days. During the previous session, the greenback briefly jumped to fresh March highs just above 105.00 before retreating marginally.
On the weekly timeframes, the technical picture has deteriorated somehow as the metal is back distancing itself from the 20-SMA that capped gains last week. On the upside, the immediate target is now represented by the $1,930 region, followed by the $1,952 level where the 100-day SMA arrives.
Fundamentally, the yellow metal could see further pressure should the upcoming US economic data continue to surprise to the upside, thus adding to signs that the Federal Reserve could continue tightening amid resilient economy and a still elevated inflation.
Of note, fresh US data showed that the economic activity in the service sector continued to expand last month, for the eighth consecutive month, with the ISM Services PMI rising from 52.7 to 54.5, exceeding the market expectation of 52.5.
Should the greenback extend the rally in the near term, the XAUUSD pair may derail the mentioned SMAs to threaten the $1900 psychological level that was last seen on August 23.
