Gold Price Analysis: XAU/USD braces for a free fall below $1673 – Confluence Detector

Gold (XAU/USD) is wallowing near three-week lows beneath $1700, undermined by way of the relentless upward thrust in the US Treasury yields, as buyers watch for the small print of the subsequent fiscal stimulus from US President Joe Biden later on Wednesday.

Strengthening US monetary recuperation and greater inflation expectations proceed to power yields higher, which weigh negatively on the non-interest-bearing gold. Further, broad-based US dollar power amid quarter-end flows additionally provides to the bearish pressures on the brilliant metal.

How is gold placed on the technical charts?

Gold Price Chart: Key resistance and help levels
The Technical Confluences Detector indicates that gold flirting with $1679, which is the convergence of the preceding day low and preceding low on four-hour.

Minor guide at the Bollinger Band four-hour decrease of $1676 ought to restrict the declines.

The subsequent sizeable draw back cushion awaits at $1673, the pivot factor one-month S1, under which a free fall may want to be anticipated toward the $1650 psychological level.

On the flip side, gold bulls are probably to face an uphill fighting on the street to recovery, with immediately upside probably to be capped round $1785, which is the Bollinger Band one-day lower.

Further up, the intersection of the Fibonacci 23.6% one-day and the preceding excessive on four-hour at $1687 may want to project the bullish commitments.

The confluence quarter round $1690 will in all likelihood be a hard nut to crack for the XAU bulls. At that point, the Fibonacci 38.2% one-day coincides with the Bollinger Band one-hour Upper.


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