XAU/USD has been unable to carry onto its as Treasury yields bounced back.
The Confluence Detector shows that gold has significant support at $1,878.
Gold prices pull back as traders book profits – What’s next? [Video]
Ignoring inflation has its limits – after markets shrugged off the rise in US Consumer price level (CPI) to five , they need been having a rethink. The initial drop by Treasury yields perplexed many and delighted gold bulls. Lower returns on safe government debt make the valuable metal more attractive.
However, as tensions toward Wednesday’s Federal Reserve System meeting are mounting, caution has returned and XAU/USD is on the retreat.
How is gold positioned on the technical charts?
The Technical Confluences Detector is showing that XAU/USD has robust support at $1,878, which is that the convergence of the Fibonacci 38.2% one-week, the Bollinger Band four-hour lower, the Fibonacci 23.6% one-month and therefore the Pivot Point one-day Support 1.
Further down, another cushion awaits at $1,871, which is where the Fibonacci 23.6% one-week and therefore the previous daily low meet .
Some resistance is at $1,888, which is that the confluence of the BB 1h-Lower, the Fibonacci 38.2% one-day, and therefore the BB one-day Middle.
It is followed by $1,894, which may be a juncture including the Fibonacci 23.6% one-day and therefore the Fibonacci 61.8% one week.