Having closed above the critical $1933 barrier, Gold treads waters amid the China data disappointment and retreat in the US Treasury yields across the curve. Meanwhile, the US dollar holds onto Thursday’s rebound, with the upside capped by the US fiscal impasse and jittery markets ahead of the critical US Retail Sales data.
Despite gold’s $200 rebound from three-week lows, the bright metal remains on track for a 4% weekly drop, snapping the nine-week winning streak. Let’s take a look at technical levels to gauge where the price is headed in the upcoming session.
XAU/USD: Key resistances and supports
The tool shows that gold is holding well above a bunch of support levels aligned at $1945, which is the convergence of the Fibonacci 38.2% one- critical day, previous low on four-hour and Bollinger Band four-hour Middle.
The next cushion is seen at $1934, where the Fibonacci 61.8% one-day and SMA50 one-hour coincide.
The recovery momentum will likely remain intact as long as the price holds above the robust support at $1933/32 (Fibonacci 23.6% one-month).
To the topside, a clearance of the immediate hurdle at $1954, the intersection of the Fibonacci 23.6% one-day and SMA10 one-hour, will call for a test of the previous week low at $1960.
The further advance will likely be staggered, given minor resistance levels are stacked up at regular intervals on its way to $1972, the pivot point one-week S1.
Here is how it looks on the tool
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