Gold Price Analysis: XAU/USD path of least resistance is down, $1.973 eyed – Confluence Detector

The Senate's stimulus approval has been only the latest blow for gold – which is selling off as US bond yields are on the rise. Investors are repricing growth and inflation prospects into US Treasuries and that makes the yieldless precious metal less attractive.  

Where is the bottom? Unfortunately for bulls, XAU/USD is technically poorly positioned. 

The Technical Confluences Detector is showing that gold faces several layers of resistance, with the first cluster awaiting at $1,700, which is the convergence of the Fibonacci 38.2% one-day, the Simple Moving Average 100-15m, the SMA 50-1h, the Bollinger Band 1h-Middle, and others. 

Another notable cap awaits XAU/USD at $1,715, which is a meeting point including the BB 1h-Upper, the Fibonacci 38.2% one-week and the previous month's low.

Looking down, immediate support awaits at $1,687, which is where the BB one-day Lower, the BB 1h-Lower and the previous day's low all hit the price.

Further down, bears are targeting $1,673, which is the convergence of the Pivot Point one-month S1, the PP one-week S1 and others.   

XAU/USD resistance and support levels

Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

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