Gold support and resistance Key for today: Gold prices pulled back nearly $20 from 7-week highs of $1790 on Wednesday, finishing the day slightly in the red. The rebound in the US Treasury yields triggered the correction in the metal. Bear cross on 1H chart and RSI below 50.00 point to the downside.
Gold Prices Support Key for Today $1760—$1755
Gold prices is extending its corrective decline from seven-week highs of $1790 reached on Monday. The rebound in the US Treasury yields serves as a key driver for the pullback in the non-yielding gold, which offsets the impact of the sagging dollar.
US President Joe Biden’s efforts to seek a deal on his $2.25 trillion infrastructure proposal revived the buying interest around the yields. The global covid vaccine optimism also collaborated with the uptick in the US rates.
How is the metal positioned on the technical charts?
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold’s pullback is testing minor support around $1766, which is the convergence of the previous day low and Bollinger Band four-hour middle.
Defending the $1761 cushion is critical for the Gold bulls. At that point, the SMA100 one-hour coincides with the Fibonacci 38.2% one-week and the previous month high.
The next powerful cap is seen at $1754, the confluence of the pivot point one-month R1 and pivot point one-day S2.
On the flip side, recapturing the $1771 hurdle (Fibonacci 23.6% one-week) could bring the $1777 resistance back in the play. The latter is the intersection of the Fibonacci 38.2% one-day and SMA10 four-hour.
Further up, the previous week high of $1784 could challenge the bullish traders, as they look to retest the multi-week tops clinched a day before.
About Technical Confluences Detector
The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
(Report By Neal Bhai)