Gold (XAU/USD) extends the three-day losing streak this Thursday, closing in on the $1800 level, as rising Treasury yields amid strengthening US economic recovery weigh negatively on the non-yielding gold. Further, uncertainty over the size of the US fiscal stimulus package keeps the gold traders unnerved.
Gold also tracks the decline in Silver, as the retail-buying frenzy in the white metal fizzles out. Focus remains on the US jobs data and sentiment on Wall Street for fresh trading impetus.
How is gold positioned on the technical charts?
Gold Price Chart: Key resistances and supports
The Technical Confluences Indicator shows that gold is flirting with the $1820 support, which is the pivot point one-day S2.
Minor support awaits at $1815, the Bollinger Band one-day Lower. A failure to resist above the latter, gold prices could fall further to test the pivot point one-day daily S3 at $1812.
The sellers target the previous month low at $1803. However, the pivot point one-week S2 at $1807 could offer some temporary reprieve to the XAU bulls.
On the flip side, recapturing the pivot point one-week S1 hurdle at $1824 could expose the $1828 barrier, which is the confluence of the previous high one-hour and pivot point one-day S1.
The previous powerful support now resistance at $1831 could be tested, where the previous week low coincides.
Further up, the bulls could challenge the Fibonacci 38.2% one-day at $1837 en route $1840. That level is the convergence of the Fibonacci 61.8% one-day and Fibonacci 23.6% one-month.
Here is how it looks on the tool
About Confluence Detector
The TCI (Technical Confluences Indicator) 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hovers around 1.0700 ahead of German IFO survey
EUR/USD is consolidating recovery gains at around 1.0700 in the European morning on Wednesday. The pair stays afloat amid strong Eurozone business activity data against cooling US manufacturing and services sectors. Germany's IFO survey is next in focus.
GBP/USD steadies near 1.2450, awaits mid-tier US data
GBP/USD is keeping its range at around 1.2450 in European trading on Wednesday. A broadly muted US Dollar combined with a risk-on market mood lend support to the pair, as traders await the mid-tier US Durable Goods data for further trading directives.
Gold: Defending $2,318 support is critical for XAU/USD
Gold price is nursing losses while holding above $2,300 early Wednesday, stalling its two-day decline, as traders look forward to the mid-tier US economic data for fresh cues on the US Federal Reserve interest rates outlook.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.