Gold (XAU/USD) bulls are trying hard to extend the recovery momentum from nine-month lows of $1676, finding some respite from the retreat in the US Treasury yields across the curve. The turnaround in the Asian equities, thanks to the Chinese intervention, has lifted the market mood, lifting the metal at the US dollar’s expense.
However, the greenback could likely regain the upside momentum if risk-aversion seeps back amid a resumption of the rally in the US Treasury yields, as the House of Representatives is due to vote the Senate’s $1.9 trillion stimulus bill on Wednesday. The price action around the yields will continue to remain the key driver for gold, in absence of relevant US economic data.
How is gold positioned on the technical graphs?
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold is struggling to take out a major resistance at $1692, which is the convergence of the previous high four-hour and Fibonacci 38.2% one-day.
The buyers will then look to recapture the Fibonacci 61.8% level at $1700, above which powerful barrier at $1706 could challenge the bulls’ commitments.
Acceptance above the latter is critical to unleashing further recovery gains towards $1715-$1717 levels, which is the intersection of the previous month low and the Fibonacci 38.2% one-week.
To the downside, the convergence of the previous day low and Bollinger Band Four-hour lower at $1677 could be put to test once again.
The next downside target is aligned at $1672, the pivot point one-month S1.
Further south, the pivot point one-day S1 at $1666 could guard the additional downside.
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 jumps to new record-high above $3,220 as China ramps up tariffs on US goods
Gold extends its relentless rally and trades at a new all-time high above $3,220 in the European session on Friday. The precious metal benefits from safe-haven flows following China's decision to raise additional tariffs on US imports to 125% from 84%.
EUR/USD climbs to fresh multi-year high above 1.1400 on intense USD weakness
EUR/USD continues to push higher and trades at its strongest level since February 2022 above 1.1400 in the European session on Friday. The US Dollar (USD) stays under heavy pressure after China raised tariffs on US imports in retaliation, fuelling the pair's upsurge.
GBP/USD extends the advance to near 1.3100 as USD selloff picks up steam
GBP/USD preserves its bullish momentum and advances to near 1.3100 in the European session. The persistent USD weakness remains the main market theme as fears over the deepening China-US trade conflict triggering a recession in the US continue to grow.
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.