US Treasury yields continue to rise, keeping XAUUSD bulls at the back of the pack.
Price Forecast: $1961 could be a key support for XAUUSD in the face of stronger USD.
The aggressive Fed’s tightening expectations means that the Gold Price is still subject to the price movement in the US dollar. In the face of a prolonged Russia-Ukraine conflict, the Fed commentary is not being updated and there are growing concerns about inflation and growth. If the market mood is worsening, the haven demand will return for the US Dollar, which could limit the upside in the Gold Price. XAUUSD could also be affected by the renewed upside in Treasury yields.
Also, : technical picture for 2022
Watch out for these key levels in gold price
The Technical Consfluences Detector indicates that gold prices are struggling to recover above $1,982. This convergence of the Fibonacci 61% one-day, previous week’s high, and Bollinger Band 1 day Upper shows that the price of gold is not in a position to make a recovery.
To resume the upward trend towards the $1,998 high from the previous day, acceptance above the former is crucial.
There are a few stiff resistance levels around $1,991 where the Fibonacci 23.6%, pivot point one week R1 and pivot point 1 day R1 coincide.
The flip side is that the $1,971 low the previous day acts as support. Below which a drop towards Fibonacci 38.2% one week at $1,966 may be possible.
Further down, XAUUSD sellers may target strong support at $1960, which is the confluence between the Fibonacci 61.8% one month and the year-end high.
