XAU/USD is fighting to hold the $2,500 mark

XAU/USD Current Price: $2,500.86

• A vacation in the United States and Canada keeps the mayors at familiar levels.
• US employment data and the Bank of Canada decision stand out this week.
• XAU/USD under short-term selling pressure after hitting a new two-week low.

Gold was trading around $2,500 a troy ounce, flat in a dead US session. The United States (US) and Canada are celebrating Labor Day, which means local markets are closed. XAU/USD started the week lower at $2,489.92, its lowest level in two weeks, paring losses during European trading hours.

However, the rest of the week will be much more interesting as the US will release more employment figures ahead of the August Nonfarm Payrolls (NFP) report, the latter scheduled for Friday, while the Bank of Canada (BoC) will announce its monetary policy decision next Wednesday. The BoC is expected to cut interest rates by 25 basis points (bps), after already cutting rates at its previous meeting.

XAU/USD Short Term Technical Outlook

The daily chart for XAU/USD shows that it has made a lower high and low, which is usually a sign of persistent selling pressure. However, the same chart shows technical indicators holding positive levels with modest bearish slopes, limiting bearish potential. Even more, the pair is developing above all moving averages with a simple moving average (SMA) of 20, maintaining its upward slope above the longer ones and providing dynamic support around $2,478.75.

The short-term picture forces risk to the downside. On the 4-hour chart, technical indicators are aiming lower below their average lines, supporting a test of the aforementioned low. At the same time, the pair is developing below a now flat SMA of 20. Finally, an optimistic SMA of 100 provides support around the aforementioned intraday low.

Support levels: 2,489.90 2,475.70 2,463.40

Resistance levels: 2,507.40 2,519.75 2,531.60