Gold prices (Yellow Metal) is struggling to extend its recovery momentum above $1700, as the US dollar clings onto the recent upside amid a cautious market mood. Gold, however, finds support from retreating US Treasury yields, as uncertainty around the passing of President Joe Biden’s $2 trillion infrastructure plan.
Gold Prices (Yellow Metal) Resistance key $1724
Surging covid cases and fresh lockdowns in Europe could dent the risk appetite, which could lift the haven bids for the US dollar at gold’s expense. Focus shifts to the US jobless claims and ISM Manufacturing PMI ahead of Friday’s critical NFP report.
What is the prediction for gold in 2021?
Gold Price Chart 2021: Resistance Zone and Support Levels
The Technical Confluences Detector shows that gold meets initial demand at $1715, which is the convergence of the previous day high and Bollinger Band 15-minutes Upper.
The gold bulls need to clear the powerful $1724 resistance to unleash any meaningful recovery from multi-week troughs. That level is the intersection of the previous week low, SMA50 four-hour and SMA200 one-hour.
The next upside barrier aligns at $1730, where the SMA10 one-day coincides with the SMA100 four-hour.
Further up, the Fibonacci 61.8% one-month at $1730 would challenge the bullish commitments.
On the flip side, fierce support awaits at $1703, the confluence of the Fibonacci 38.2% one-month, pivot point one-week S2 and SMA100 one-hour.
If the selling pressure intensifies, a test of the Fibonacci 38.2% one-day at $1700 could be on the bears’ radars.
Further south, defending the Fibonacci 23.6% one-month at $1692 would be critical for the gold bulls.