Gold (XAU/USD) is consolidating last week’s rally to two-month highs of $1784, in the wake of the persistent weakness in the US Treasury yields across the curve. Resurgent haven demand for the US dollar, amid concerns over the US President Biden’s $2.25 trillion infrastructure stimulus and covid infections, appears to be capping the upside in gold. However, gold bulls remain motivated, as China steps up bullion imports.
How is the metal positioned on the technical graphs?
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold remains poised for additional upside amid a lack of healthy resistance levels until $1798.
That barrier is the confluence of the pivot point one-week R1 and pivot point one-month R2.
Ahead of that resistance, the XAU bulls need to chew offers around $1784, the confluence of Friday’s high and pivot point one-day R1.
Alternatively, powerful support is envisioned around $1774, where the Fibonacci 38.2% one-day coincides with the Bollinger Band one-day Upper.
The next significant support is aligned at $1769, the intersection of the Fibonacci 61.8% one-day and 23.6% one-week.
Further south, $1760 is the level to beat for the XAU bears. At that level, the Fibonacci 38.2% one-week and the previous month high converge.
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 drops to daily lows and challenges 1.0900 post-Lagarde
EUR/USD maintains its bearish bias around the 1.0920 region after the ECB left no room for surprises at its event, leaving its policy rates unchanged, while Presient Lagarde siad inflation in the region is expected to hit the goal in H2 2025.
GBP/USD remains on the defensive in the sub-1.3000 region
The Dollar’s small rebound prompts some retracement in the broad risk complex and motivates GBP/USD to shed some ground after the ECB matched estimates and left its interest rates at 3.75% on Thursday.
Gold looks bid near $2,470 on steady ECB
The precious metal maintains its bullish bias near the $2,470 region in the wake of the ECB’s decision to keep its policy rates intact at its gathering on Thursday.
Billionaire Mark Cuban highlights Silicon Valley's increasing support for former President Trump as a “Bitcoin Play”
Bitcoin (BTC) faces resistance and stalls at around the $65,000 mark on Thursday, while on-chain data indicate a rise in holdings among short-term investors, coupled with a slight increase in inflows at US spot Bitcoin ETFs.
What the US election could mean for deficits, debt and the yield curve
Government borrowing and the national debt are barely getting a mention in the US election campaign, yet a failure to change trajectory risks further debt downgrades, more market volatility and higher borrowing costs.