Gold Bulls Remain: Having failed several attempts to resist above the $1,870 threshold, gold price continues to hover in a familiar range above the critical $1,845 support.
The latest uptick in gold price can be attributed to a sharp sell-off in the US Treasury yields, as the risk sentiment sour amid inflation and coronavirus concerns. However, strengthening US economic recovery calls for earlier Fed’s tightening, boosting the US dollar, which could limit gold’s upside.
Read More:
Gold Reports: Key levels and Trend
The Gold Technical Level shows that gold price staged a solid rebound from ahead of the key $1,845 support, which is the convergence of the pivot point one-month R2 and SMA10 one-day.
If that cap is taken out on a sustained basis, then gold bears will test minor support at $1,847, the Fibonacci 38.2% one-week.
A steep drop towards the pivot point one-day S3 at $1,839 cannot be ruled out should the abovementioned support fail to hold.
The Fibonacci 61.8% one-week at $1,834 will be the line in the sand for gold bulls.
Alternatively, gold buyers need to find a strong foothold above a dense cluster of resistance levels around the $1,870 region.
That level is the intersection of the SMA100 one-hour, Fibonacci 38.2% one-day and SMA10 four-hour.
Further up, the previous week’s high of $1,869 will get retested.