Gold Approaches $1,865 Hurdle As Key US Catalysts Loom

Gold price appears well-set to print the first weekly gain in five as the metal buyers cheer a softer US Dollar. The retreat in the US Treasury bond yields from multi-day highs could strengthen the bullion’s latest rebound.

The Technical Confluence Detector shows that the Gold price grinds higher past short-term vital hurdles. It now supports, which suggests a smooth road unless hitting the wall of resistance around $1,865, comprising Fibonacci 38.2% in one month.

That said, a convergence of the Pivot Point one-day R2, Fibonacci 161.8% daily, and the middle band of the Bollinger on one-day, close to $1,845, appears a small check for the bulls. Also likely to act as minor resistances are the levels comprising Pivot Point one-day R3 and Pivot Point one-week R2, respectively, around $1,849 and $1,862.

Alternatively, the previous high on four-hour and Fibonacci 23.6% in a one-month timeframe together highlight $1,841 as the immediate support. Following that, Fibonacci 23.6% on one-day and Fibonacci 61.8% on one week, around $1,833 at the attest, can act as the last defense of the Gold buyers.

It’s worth observing that 50-HMA and Fibonacci 61.8% on one-day, close to $1,835, acts as an extra filter towards the south.

Fundamental Overview

Gold price (XAU/USD) appears well-set to print the first weekly gain in five as the metal buyers cheer a softer US Dollar. The retreat in the US Treasury bond yields from multi-day highs could strengthen the bullion’s latest rebound.

The latest round of Federal Reserve (Fed) talks renewed the policy pivot speculations and joined mixed US data to exert downside pressure on the US Dollar and the Treasury bond yields. It’s worth noting that the impressive PMIs from China and the policymakers’ readiness to resume the trade talks between Beijing and Washington also seem to keep the Gold buyers hopeful.

However, the cautious mood ahead of the top-tier data/events and fears of the Sino-American tussle over China’s ties to Russia cap the XAU/USD’s immediate upside. That said, Friday’s US ISM Services PMI for February, expected at 54.5 versus 55.2 prior readings, will be essential to watch for intraday directions.

Primary attention will be given to the next week’s Federal Reserve (Fed) Chairman Jerome Powell’s Testimony, and the monthly US jobs report for February, encompassing the key Nonfarm Payrolls (NFP).