• Gold Price snaps a five-day uptrend, as the US dollar stages a solid rebound.
  • US Treasury yields remain on the back foot ahead of the FOMC minutes.
  • Strong support at $1,850 could limit the pullback in XAUUSD from two-week highs.

Gold Price is retreating from two-week highs of $1,870, as tensions mount in the lead-up to the minutes of the Fed May policy meeting, which is likely to provide fresh hints on the central bank’s tightening path. The broad rebound in the US dollar, despite a cautious market mood, is weighing negatively on the bright metal. Although the latest Fed commentary, which expressed concerns of soft-landing, undermines the US Treasury yields across the curve. This, in turn, helps XAUSUD to find a floor, for now.

Also read: Gold Price Forecast: XAUUSD bulls await Fed minutes for the next upside leg

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the Gold Price is teasing the $1,855 support area, which is the convergence of the pivot point one-day S1 and the previous low four-hour.

Failure to resist above the latter will trigger a fresh drop towards the $1,850 cap, where the previous day’s low and the previous week’s high coincide.

Gold sellers will then look out for the $1,845 demand zone, which is the intersection of the SMA5 one-day and pivot point one-month S1.

Further down, the SMA200 one-day at $1,839 will be put to test.

On the upside, XAU bulls could face initial resistance at around $1,862 on buying resurgence. That level is the confluence of the Fibonacci 38.2% one-day and SMA10 four-hour.      

The Fibonacci 23.6% one-day at $1,865 will then challenge the bearish commitments.

The previous day’s high of $1,870 and the previous month’s low of $1,872 will be next on the buyers’ radars.

Here is how it looks on the tool

 fxsoriginal

About Technical Confluences Detector

The TCD (Technical Confluences Detector) 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.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

This article was originally published by Fxstreet.com.Read the original article here.

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