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.
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.