Gold Price Analysis: XAU/USD below structure, bearish bias persists
|- Bears seek a test of the $1,786 confluence area while below market-structure.
- The upside Fibs remain compelling interim targets as well, but bearish bias below them persist.
The price of gold has failed to convince in the $1,800s without a break above $1,820, so far.
Gold's surge had weighed on the dollar, but we are seeing a come back in the greenback as coronavirus themes sour markets.
This could equate to the immediate allure of the precious metal to fizzle out which brings the technicals into focus as it approaches its 2011 record high and a nearby 2016 uptrend Fibo-projected peak at $1,907.
Gold is now about 5% away from making a nearly decade-wide double-top by its 2011 record high at $1,920.
Given that the greenback is not going down without a fight, there is a short term prospect for shorting opportunities in the yellow metal.
The structures above are compelling targets. While the price remains below the upside areas of resistance, then the bias is towards a test of prior supports.
When looking to the technical confluence indicator, we can see the price is between resistance and support, making for stronger prospects of a test to the noted levels around $1,786.
Technical Confluences Indicator
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