Gold (XAU/USD) continues to face rejection at higher levels, as the US dollar attempts a tepid bounce from multi-week lows amid covid vaccine and China concerns-led risk-aversion. Also, investors could resort to profit-taking on their dollar trades after the recent sell-off and ahead of the critical US Jobless Claims and Retail Sales data.
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold’s upside is capped near $1741, where the Fibonacci 38.2% one-day, SMA50 four-hour and Bollinger Band four-hour Middle converge.
A dense cluster of healthy resistance levels then awaits the XAU bulls around $1745, the intersection of the SMA5 one-day, Fibonacci 61.8% one-day and Fibonacci 38.2% one-week.
Further, fierce resistance at $1750 will continue to test the bulls’ commitments. At that level, the previous day high coincides with the Fibonacci 23.6% one-week.