- Gold price retreats from weekly highs as firmer Treasury yields lift the USD.
- Hawkish Fed expectations limit gold’s upside despite inflation worries.
- Gold bulls have the upper hand, $1,810 confluence holds the key.
Gold price is on the back foot on Tuesday after witnessing back-to-back rallies following the stunning US employment data. The renewed uptick in the US Treasury yields is boosting the demand for the greenback across the board, weighing on the non-yielding gold. Although looming US-Russian tensions over Ukraine and Sino-American tensions could help put a floor under the bright metal. Looking ahead, attention remains on the US inflation data due for release later this week for fresh insights on Fed’s tightening plans.
Read: Gold back to inflection point
Gold Price: Key levels to watch
The Technical Confluences Detector shows that the gold price retracement is challenging the critical support area near $1,818, where the Fibonacci 38.2% one-day converges with the SMA100 four-hour.
If that support is breached then sellers will aim for the previous week’s high at $1,815.
The pivot point one-day S1 at $1,811 will come to the rescue of bulls should the pullback extend in gold price.
The last resort for buyers is seen at $1,809, strong support comprising of the Fibonacci 23.6% one-week, Fibonacci 38.2% one-month and SMA5 one-day.
On the flip side, immediate upside needs validation above the confluence of the pivot point one-week R1 and Fibonacci 23.6% one-day at $1,821.
The next critical resistance is placed at the weekly highs of $1,824, above which the Fibonacci 61.8% one-month at $1,826 could be tested.
A fresh upswing will kick in above the latter, opening doors towards $1,830 – pivot point one-day R1.
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. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.
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