Gold price takes a breather after the two-day recovery rally but holds well above the $1697 key level. The returns on the US Treasuries resume the upside on the back of the revival of the reflation theme after Congress passed the $1.9 trillion stimulus bill on Wednesday.
Gold traders digest the weak US inflation report while waiting US President Joe Biden’s address to the nation later on Thursday.
Ahead of that, let’s see how gold is positioned technically.
Gold Price Trend : Key resistance and support levels
The Technical Confluences Detector shows that gold needs to rise above a dense cluster of resistance levels stacked up around $1740 key levels, in order to test a major hurdle at $1745, which is the pivot point one-week R1.
The gold bulls could face stiff resistance at $1755, which is the Fibonacci 23.6% one-month.
The buyers will then target $1760, the confluence of the previous week high, Bollinger Band one-day Middle.
To the downside, strong support key around $1718 would limit the declines. That area is the confluence of the Fibonacci 23.6% one-day, previous low four-hour and SMA5 four-hour.
The powerful cushion at $1708 is the last resort for the bulls. At that point, the SMA200 one-hour coincides with the Fibonacci 38.2% one-week and Fibonacci 61.8% one-day.