Gold (XAU/USD) remains under pressure on Wednesday, having faced rejection once again at $1900. The first US Presidential election debate was chaos and weighed on the market mood, which helped the safe-haven US dollar recover from weekly lows. US President Donald Trump warned of a delay in the election and the eventual 'peaceful transition'. Meanwhile, the odds of Joe Biden winning propped up, which didn’t go down too well with the investors.
Attention returns to the US fiscal stimulus and a raft of key economic releases, including the critical US employment and GDP. How is gold positioned technically?
Following the latest leg down, the Technical Confluences Indicator shows that Gold is trying hard to recapture a dense cluster of resistance levels between $1890/92, which is the convergence of the Bollinger Band one-hour Middle, SMA50 and 5 on four-hour.
The next relevant barrier is placed at $1894, the Fibonacci 23.6% one-day. A break above the latter could trigger a minor rally towards the previous day high at $1899.