The US dollar draws renewed safe-haven demand amid firmer Treasury yields.
Gold price turns bearish with technicals amid bond rout, 50-DMA back in sight.
Gold price continues to remain at the mercy of the dynamics in the US bond market and the developments surrounding the Russia-Ukraine crisis. Gold price has enjoyed good two-way businesses so far this Monday, although the renewed upside lacks follow-through momentum. Risk sentiment has turned sour as the EU readies more sanctions against Russia, which will buoy the safe-haven US dollar‘s demand at gold’s expense. Further, the hawkish Feds outlook-led rally in the US Treasury yields is also likely to keep gold sellers cheerful, in the absence of top-tier economic events.
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Gold Price: Key levels to watch
The Technical Confluences Detector shows that gold price is testing offers at powerful resistance of the Fibonacci 61.8% one-week at $1,934.
If the latter is scaled, then gold bulls will face the next relevant resistance around $1,937, which is the confluence of the pivot point one-day R1, SMA 50, 100 and 200 four-hour.
The previous days high at $1,940 will test the bearish commitment further up. A sustained break above that level will fuel a fresh rally towards the pivot point one-day R2 at $1,949.
On the flip side, gold sellers are attacking strong support at $1,928, which is the SMA5 one-day.
The next downside target aligns at $1,925, the confluence of the SMA5 four-hour and the Fibonacci 23.6% one-day.
Fierce cap at around $1,917 will be the last resort for gold bulls, as the latter is the intersection of the Fibonacci 38.2% one-week, the previous days low and the pivot point one-day S1.
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