Gold has stalled its recovery from five-month lows of $1688, having failed to find acceptance above $1750, as the US dollar continues to hold the recent gains fuelled by Friday’s NFP data. A big beat on the US employment report fanned expectations of earlier Fed tapering. Investors now assess the implications of a sooner than previously thought Fed’s monetary policy assessment, with all eyes on this week’s US inflation report.
Gold Price: Key levels to watch
The Technical Confluences Detector shows that gold is heading towards powerful support at $1736, which is the convergence of the pivot point one-month S2, pivot point one-week S1. The next relevant downside target is seen at $1729, the pivot point one-day S2. Further south, the bears will need to beat the fierce cap at $1723, the Fibonacci 161.8% one-month.
On the flip side, the confluence of the SMA5 four-hour and pivot point one-day S1 at $1746 will offer a stiff resistance on any fresh upside attempts. Gold buyers will then target $1752, the intersection of the previous high four-hour. Gold price turned south from that level after failing to find acceptance above it. The next resistance awaits at the previous day’s low of $1759.
