- 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
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.