Gold Price News and Forecast: XAU/USD sellers eye $1,905 support confluence

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD looks north amid US political woes, Georgia’s Blue sweep – Confluence Detector

Gold (XAU/USD) attempts a bounce after Wednesday’s 2% slide, fuelled by the rally in US Treasury yields and stocks. Prospects of additional US stimulus amid a likely Blue sweep in the Senate revived the reflationary trades and drove the US rates sharply higher while Wall Street to fresh record highs.

Despite the sell-off in gold, the risks remain tilted to the upside amid expectations of more stimulus and growing US political tensions after the attack on Capitol Hill late Wednesday.

Gold Price Analysis: XAU/USD sellers eye $1,905 support confluence

Having flashed biggest losses in over a month, gold fails to consolidate as it drops to $1,917.75, down 0.08% intraday, during early Thursday. The yellow metal took a U-turn from a short-term falling resistance line the previous day and hence the sellers are looking for further favors.

As a result, a confluence of 10-day SMA and an ascending trend line from December 01, 2020, around $1,905, gains the market attention amid normal RSI conditions.

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