Gold Price Analysis: XAU/USD bears eye $1,670 as Treasury yields rebound – Confluence Detector

Gold recently refreshed intraday low to $1,706.68, before bouncing off to $1,708, during early Thursday. The yellow metal dropped to the fresh low since June 2020 the previous day as market sentiment dwindled amid a fresh run-up in the Treasury yields that propelled the US dollar and disappointing commodities.

Behind the moves could be the hopes of a heavy inflow of funds due to the recent UK budget and upcoming US stimulus. Also on the same line could be the central bankers’ efforts to tame the bond bears.

The risk-off moves gained extra support during Asia amid chatters of progress in the US covid relief package and an abrupt off in the US House amid a rumored plot to attack Capitol Hill.

As a result, S&P 500 Futures join stocks in Asia-Pacific to mark losses whereas the US 10-year Treasury yields remain firmly directed towards 1.50%.

Moving on, Fed Chair Jerome Powell’s speech at 17:05 will be the key to confirm the reflation fears and hence will be watched closely ahead of Friday’s NFP.

Gold: Key levels to watch

The Technical Confluences Indicator suggests the uphill battle for the gold prices unless providing a clear break above $1,743 as multiple hurdles to the north joins US dollar strength to favor gold sellers.

Among them, 38.2% Fibonacci retracement on daily (1D) and the previous high on the four-hour (4H) and hourly (1H) formations join the upper band of the Bollinger on the 15-minute chart to highlight $1,718 as an immediate key hurdle.

Following that, 61.8% Fibonacci retracement of 1D and SMA10 on 4H offers $1,729-30 as an extra resistance before fueling the bullion to the key $1,743 upside barrier comprising 23.6% Fibonacci retracement on a weekly (1W) and previous high on 1D.

Meanwhile, the $1,700 round-figure can tease the gold bears before directing them to the Pivot Point’s first support, S1, on the W1 near $1,693.

Though, the bullion’s further downside will witness strong support of around $1,670, including Pivot Point S1 for the monthly (1Month) formation.

Here is how it looks on the tool


About Technical Confluences Detector

The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.2050 amid upbeat EZ PMIs, USD decline

EUR/USD is trading above 1.2050 after upbeat Eurozone Preliminary PMIs. The US dollar remains heavily offered across the board amid a mixed market mood, in the wake of Biden's plan for a tax hike. US PMIs awaited. 


GBP/USD holds gains below 1.3900 amid upbeat UK data

GBP/USD is consolidating gains below 1.3900, as the US dollar resumes decline after Biden's tax hike plan fuelled rally fades. The UK Retail Sales and PMIs beat expectations, offering support to the pound. 


Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD eases from tops, downside remains cushioned

Gold struggled to capitalize on its intraday positive move to the $1,790 region. A modest bounce in the equity markets, US bond yields exerted some pressure. The prevalent USD selling bias should help limit the downside for the commodity.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more