Gold price is attempting a minor recovery above $1850, although the bulls appear to lack conviction, as the US dollar continues to hover near monthly highs. Further, a renewed uptick in the US Treasury yields also caps the bounce in gold price. Despite the limited bullish potential, gold continues to draw support from a lack of clarity on the Fed’s next policy move, as the central bank’s two-day monetary policy meeting begins later this Tuesday.
Gold: Key levels to watch
The Technical Confluences Detector shows that gold price is gathering strength before it extends Monday’s recovery towards the previous week’s low of $1870.
The next upside target for gold bulls awaits at $1880, which is the convergence of the Fibonacci 23.6% one-month, previous day’s high and Fibonacci 23.6% one-week.
Further up, the confluence of the SMA100 one-hour and Fibonacci 38.2% one-week at around $1884 could be probed.