Gold has been drifting higher as the market mood improves and US Treasury yields play a more limited role in determining the market direction. The precious metal is able to shine while other commodities are under pressure – concerns of a slow exit from the covid crisis have resurfaced. 

How is XAU/USD positioned on the charts?

The Technical Confluences Detector is showing that gold is well-supported at $1,724, which is the convergence of the Bollinger Band 1h-Lowe,r the BB one-day Middle, the previous 1h-Low, the Pivot Point one-week Support 1, and other lines.

Another cushion awaits the yellow metal at $1,715, which is the meeting point of the previous month’s low and the PP one-day S1. 

Immediate resistance awaits at $1,734, which is the confluence of the ten-day Simple Moving Average, the SMA 50-4h and the SMA 200-1h. 

The upside target for XAU/USD bulls is $1,741, which is a juncture including the PP one-day Resistance 1 and the Fibonacci 38.2% one-day.

XAU/USD resistance and support levels

Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

Learn more about Technical Confluence

Articles You May Like

GBPUSD trades to a new low and tests a swing level over the last week or so
Oil set for weekly loss as markets worry about demand
Week Begins with Market Optimism, Metals See Strong Gains
E.l.f. Beauty shares soar 19% after retailer indicates its torrid growth may not be over
Britain’s inflation rate could be about to drop below the Bank of England’s 2% target