XAU/USD supports fall by $16731 min read
Gold (XAU/USD) is sloshing near three-week lows below $1700, undermined by the relentless rise within the US Treasury yields, as investors await the small print of subsequent fiscal stimulus from US President Joe Biden later on Wednesday.
Strengthening US economic recovery and better inflation expectations still drive yields higher, which weigh negatively on the non-interest-bearing gold. Further, broad-based US dollar strength amid quarter-end flows also adds to the bearish pressures on the brilliant metal.
The Technical Confluences Detector shows that gold flirting with $1679, which is that the convergence of the previous day low and former low on four-hour.
Minor support at the Bollinger Band four-hour lower of $1676 could limit the declines.
The next significant downside cushion awaits at $1673, the pivot point one-month S1, below which a free fall could be expected towards the $1650 psychological level.
On the flip side, gold bulls are likely to face an uphill battle on the road to recovery, with immediate upside likely to be capped around $1785, which is the Bollinger Band one-day lower.
Further up, the intersection of the Fibonacci 23.6% one-day and the previous high on four-hour at $1687 could challenge the bullish commitments.
The confluence zone around $1690 will likely be a troublesome nut to crack for the XAU bulls. At that point, the Fibonacci 38.2% one-day coincides with the Bollinger Band one-hour Upper.