Gold (XAU/USD) is on the defensive so far this Wednesday, as the US Treasury yields attempt a comeback, snapping a three-day rout. The US dollar wallows in multi-day lows, as investors rethink the Fed rate hike expectation this year. The FOMC minutes are likely to offer fresh direction to gold.
With the earnings season kicking in, markets turned cautious and triggered a pullback in the US stocks from record highs. The retreat in Wall Street indices offered some support to gold on Tuesday.
How is gold positioned on the technical graphs?
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold has failed to sustain above the $1,740 barrier, which is the confluence of the Fibonacci 38.2% one-day and SMA5 one-hour.
Therefore, the bears head for a test of a dense cluster of healthy support levels around $1,736, where the previous week high, Fibonacci 61.8% one-day and SMA200 four-hour coincide.
The next cushion awaits at $1731, which is the pivot point one-day S1.
Crucial support at $1727 could be the line in the sand for the XAU buyers. That level is the intersection of the Fibonacci 61.8% one-month, previous day low and SMA100 four-hour.
Alternatively, immediate resistance awaits at the Fibonacci 23.6% one day at $1742.
The previous day high at $1745 would challenge the bulls’ commitments.
If the buying interest picks up pace, the pivot point one-week R1 at $1749 could be tested.
Further up, strong resistance of the pivot point one-month R1 at $1753 could then contain the upside.
Here is how it looks on the tool
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD looks consolidative near 1.1330
EUR/USD trades with modest losses in the low-1.1300s on Tuesday amid an equally humble advance in the US Dollar. Earlier in the day, mixed Eurozone results saw Industrial Production increase by 1.1% in February and the ZEW Economic Sentiment tumble to -18.5 in April.
GBP/USD remains firm above the 1.3200 mark
Following fresh six-month highs around 1.3250, GBP/USD is now facing some mild selling pressure and is receding toward the 1.3230-1.3220 band amid an acceptable recovery in the Greenback. Cable's strong performance, in the meantime, comes amid mixed results from the UK jobs report.
Gold clings to gains just above $3,200
Gold keeps its constructive tone in place on Tuesday, trading just above $3,200 per troy ounce and reversing the pessimism seen at the beginning of the week. Reduced worries about an escalating global trade conflict and a more positive risk environment have capped the gains for XAU/USD so far.
Bitcoin aiming for $95,000 as Global M2 money supply surges
Bitcoin (BTC) price edges higher and trades slightly above $85,500 at the time of writing on Tuesday after recovering nearly 7% the previous week. The rising Global M2 money supply could be a favorable signal for both Gold and Bitcoin.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.