Gold Price Analysis: Gold looks to test the lower bound of the recent trading range, as the US dollar attempts a bounce amid worsening market mood. Rising concerns over the coronavirus surge in Europe, slower vaccines rollout and the West sanctioning China continue to temper the risk sentiment, in turn, boding well for the safe-haven dollar.
Gold Price Analysis
Gold failed to benefit from the reports that US President Joe Biden’s advisers are drawing up plans for $3 trillion in new infrastructure spending, The focus shifts to the Fed Chair Jerome Powell’s testimony due later on Tuesday after he said that the economic recovery is still “far from complete,” in his speech a day before.
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold is clinging on to strong support at $1733, which is the convergence of the Fibonacci 61.8% one-week, SMA50 four-hour and SMA10 one-day.
The next support awaits at $1731, where the SMA200 one-hour and Fibonacci 23.6% one-day meet. A test of the previous day low at $1727 would be next on the sellers’ minds, below which the pivot point one-week S1 at $1725 could be tested.
The previous month low at $1717 could be the last resort for the gold bulls. On the flip side, the buyers need to find a strong foothold above $1740, which is a powerful resistance, comprising of the Fibonacci 61.8% one-day, SMA5 one-day and SMA10 four-hour.
The gold bulls could then target $1750, the Fibonacci 23.6% one-week and pivot point one-day R1. Further up, the Fibonacci 23.6% one-month at $1753 could be back in play.