Gold (XAU/USD) is wallowing near three-week lows below $1700, undermined by the relentless rise in the US Treasury yields, as investors await the details of the next fiscal stimulus from US President Joe Biden later on Wednesday.
Strengthening US economic recovery and higher inflation expectations continue to drive yields higher, which weigh negatively on the non-interest-bearing gold. Further, broad-based US dollar strength amid quarter-end flows also adds to the bearish pressures on the bright metal.
How is gold positioned on the technical charts?
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold flirting with $1679, which is the convergence of the previous day low and previous low on four-hour.
Minor support at the Bollinger Band four-hour lower of $1676 could limit the declines.
The next significant downside cushion awaits at $1673, the pivot point one-month S1, below which a free fall could be expected towards the $1650 psychological level.
On the flip side, gold bulls are likely to face an uphill battle on the road to recovery, with immediate upside likely to be capped around $1785, which is the Bollinger Band one-day lower.
Further up, the intersection of the Fibonacci 23.6% one-day and the previous high on four-hour at $1687 could challenge the bullish commitments.
The confluence zone around $1690 will likely be a tough nut to crack for the XAU bulls. At that point, the Fibonacci 38.2% one-day coincides with the Bollinger Band one-hour Upper.
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
Gold price jumps to fresh record high above $3,200 on US-China tariff war
Gold price sits at all-time highs of $3,219 in the Asian session on Friday. The weakening of the US Dollar and escalating trade war between the US and China provide some support to traditional safe haven asset Gold price amid increased dovish Fed expectations.
USD/JPY falls back below 143.00 on relentless US Dollar selling
USD/JPY is back under 143.00 in Asian trading hours on Friday, stalling the recovery near 143.50. The pair is tracking the US Dollar price action amid persistent trade jitters and US recession fears. The Fed-BoJ divergent policy expectations support the Japanese Yen, keep the weight intact on the pair.
AUD/USD battles 0.6200 as sellers return on trade tensions
AUD/USD is battling 0.6200 in the early European morning on Friday. US-China trade jitters and financial stability concerns offset persistent US Dollar weakness, reviving the bearish momentum in the pair. US data and tariff talks remain in focus.
Bitcoin, Ethereum and Ripple show weakness while XRP stabilizes
Bitcoin and Ethereum prices are hovering around $80,000 and $1,500 on Friday after facing rejection from their respective key levels, indicating signs of weakness. Meanwhile, Ripple broke and found support around its critical level; maintenance suggests a recovery on the cards.
Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.
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.