Gold price (XAU/USD) has had another bearish session, selling off towards the $1789.49 support line. This comes as US long-term bond yields have another resurgent session. However, the price has bounced off this support line, allowing the yellow metal to claw back some of the earlier losses of the day.
As FICC Technical Analyst at Commerzbank Karen Jones notes, gold is trying to reassert an upward move but it is finding huge struggles at the resistance posed by the $1814 price level. She also notes that the 200-day moving average comes in at $1862, which leaves the gold price with more work to do to be able to push upwards.
Downside targets for Commerzbank are the $1670 June 2020 low and the 2019-2021 support at $1650, which are brought to the notice of traders if the price drops below $1760. Upside targets are the $1850 resistance and the $1862 200-day moving average, as well as the $1906 resistance (21 December high) and the highs at 1965.84/1973.8.
Technical Levels to Watch
From my analysis using support and resistance levels traced in 2020, gold price has formed a pinbar which currently sits on the support line formed by the triangle’s lower boundary. A move below the 1789.49 support line also breaks down this triangle border. This opens the door for a fall in gold price towards 1763.30, with 1741.01 and 1699.43 lining up as additional targets to the south.
On the other hand, a bounce from the triangle’s lower border pushes towards a retest of the 1815.20 resistance. A break above this price level sends the XAU/USD towards the 1851.23 price mark, with 1881.68 and 1900.95 forming additional upside targets.
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XAU/USD Daily Chart
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