Gold Price Analysis: XAU/USD bears eye a decisive break below $1871 – Confluence Detector

Gold Price Analysis: XAU/USD bears eye a decisive break below $1871 – Confluence Detector

Gold (XAU/USD) licks wounds after hitting fresh monthly lows below $1870 on Wednesday. The yellow metal fell amid resurgent haven demand for the US dollar, as partial lockdowns implemented in Germany and France threatened to derail the global economic recovery.

“Sell everything mode” returned to markets amid renewed coronavirus fears, as gold tumbled alongside stocks. The metal closed below the critical 100-DMA support of $1887 on a daily basis for the first time since March. Let’s take a look at the charts to see if gold will resume its downtrend. Gold: Key resistances and supports

The Technical Confluences Indicator shows that the yellow metal is flirting with the $1884 barrier, which is the confluence of the SMA5 four-hour and Fibonacci 23.6% one-month.

The next upside cap appears at $1887, where the pivot point one-week S1 coincides with SMA100 one-day.Further up, the intersection of the previous week low and SMA10 four-hour at […]

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