Gold (XAU/USD) is extending its corrective decline from seven-week highs of $1790 reached on Monday. The rebound in the US Treasury yields serves as a key driver for the pullback in the non-yielding gold, which offsets the impact of the sagging dollar. US President Joe Biden’s efforts to seek a deal on his $2.25 trillion infrastructure proposal revived the buying interest around the yields. The global covid vaccine optimism also collaborated with the uptick in the US rates.
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold’s pullback is testing minor support around $1766, which is the convergence of the previous day low and Bollinger Band four-hour middle.
Defending the $1761 cushion is critical for the XAU bulls. At that point, the SMA100 one-hour coincides with the Fibonacci 38.2% one-week and the previous month high.