Gold (XAU/USD) has reversed the early bounce and resumes the two-day decline, as Treasury yields regain upside momentum amid rising inflation expectations. The renewed uptick in the yields strengthened the recovery in the US dollar, as all eyes remain on the critical US CPI release for March.
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold has breached the key support around $1730, the confluence of the previous day low, Fibonacci 61.8% one-month and SMA200 four-hour.
The next relevant support is seen at $1725, where the pivot point one-week S1 lies.
The previous week low at $1721 could offer additional comfort to the XAU bulls. A firm break below the last could trigger a sharp drop toward the pivot point one-day S2 at $1716.
Alternatively, recapturing the abovementioned $1730 hurdle is critical to reviving the upside momentum.
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