Gold Price Analysis: XAU/USD path of least resistance is up as Yellen testifies – Confluence Detector
Janet Yellen, the nominee for Treasury Secretary is testifying before the Senate and asking politicians to go "big." The former Chair of the Federal Reserve is familiar with both fiscal and monetary stimulus that XAU/USD bulls are eager to hear of.
How is the precious metal positioned on the technical graphs?
The Technical Confluences Indicator is showing that gold has some support at $1,835, which is the convergence of the Bollinger Band 15min-Lower, the BB 1h-Lower and the Fibonacci 38.2% one-week.
Gold price drops amid stimulus and poor data
The price of gold has declined further amid incoming U.S. President Joe Biden’s fiscal stimulus and poor economic data, which is a bearish sign.
The weakness in the gold market continued last week. As the chart below shows, the London P.M. Fix declined below $1,840 last Friday (the price of the yellow metal later declined even further, i.e., below $1,830).
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