Gold is holding the lower ground, heading closer towards $1800, as traders remain cautious and refrain from placing any fresh directional bets ahead of the all-important US Nonfarm Payrolls data due this Friday. Gold remains under pressure, courtesy of positive US 10-year Treasury yields, amid a recovery in the risk appetite. However, modest weakness in the US dollar combined with persisting coronavirus concerns continue to lend support to bulls, leaving gold price range-bound.
The Technical Confluences Detector shows that gold is challenging critical support at $1809, which is the convergence of the Fibonacci 38.2% one-month, Fibonacci 23.6% one-day, Fibonacci 61.8% one-week and SMA10 one-day.
If the abovementioned support caves in, then gold sellers will look for a test of the next relevant downside target at $1804.
