In the aftermath of the Nonfarm Payrolls report, gold has benefited from lower Treasury yields.
XAU/USD confronts two important resistance lines ahead of $1,800, according to the Confluence Detector.
Will gold recover in 2021, like it did in June?
Is it a $1,800 attack? Not so soon, as XAU/USD faces technical challenges. Gold has benefited from the United States’ only somewhat positive Nonfarm Payrolls data. While the United States added 850,000 jobs in June, wage growth remained sluggish, and revisions only added 15,000 jobs. As a result, Treasury yields have fallen, making yieldless gold more appealing.
However, the price of the precious metal faced technical obstacles following the initial rush. This is how XAU/USD is currently trading.
Gold is encountering opposition at $1,783, which is the confluence of the previous daily high and the Fibonacci 38.2 percent one week, according to the Technical Confluences Detector.
The second stumbling block is at $1,790, where the Fibonacci 23.6 percent one-month and the 100-day Simple Moving Average intersect.
The convergence of the Bollinger Band 1h-Middle and the prior 4h-low provides immediate support at $1,780.
The Fibonacci 61.8 percent one-week and the SMA 10-one-day converge at $1,775, which is followed by $1,775.
Using Technical Confluences, the Confluence Detector uncovers intriguing potential. The TC is a tool for locating and highlighting price levels when indicators, moving averages, Fibonacci levels, Pivot Points, and other indicators are congested. Knowing where these congestion areas are can be quite beneficial to a trader and can be used as a foundation for many tactics.
To learn more about Technical Confluence, go here./n
