The gold rate is up 1% on Tuesday, erasing half of the sell-off observed since Friday, as bulls seek for the $1800 mark once more. The continued depreciation of the US dollar across the board is assisting gold’s price recovery. The dollar’s safe-haven demand is being weighed down by risk-on flows, which is underpinning gold‘s price. Concerns about rising prices and global economic growth have been eclipsed by expectations of strong corporate earnings reports from the United States, particularly from the tech sector. In the midst of a data-light Tuesday, the decline in US Treasury yields is also boded well for gold price.
Key levels to keep an eye on in the gold price
Gold is on a solid recovery path, according to the Technical Confluences Detector, and is presently challenging the convergence of the pivot point one-day R3 and the previous high four-hour at $1783.
The Fibonacci 23.6 percent one-week coincides with the Fibonacci 61.8 percent one-month, making $1791 the next stop for gold bulls.
The key SMA200 one day at $1795 will be tested further up. The pivot point one-week R1 intersects at that level.
The bearish commitments will be tested when the previous week’s high of $1801 is reached.
Rejection at higher levels, on the other hand, could prompt sellers to target immediate support around $1778, which is the intersection of the SMA50 one day and Bollinger Band four-hour Middle.
The next important support level is $1772, which is the intersection of the previous day’s high and the SMA200 four-hour moving average.
Around $1770, a thick cluster of good support levels has formed, limiting the price of gold’s further decline.
The Fibonacci 61.8 percent one-week, SMA50 four-hour, and SMA200 one-hour make up the demand area.
The Fibonacci 38.2 percent one-month and one-day convergence appea to be the line in the sand for gold buyers around $1765.