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
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.