Gold has been on a free-fall since Pfizer announced that its COVID-19 vaccine candidate has proven to have a 90% efficiency rate. Moreover, the pharmaceutical firm’s approach is also used by other companies, and other vaccines could also win approval afterward.
Immunization optimism makes fiscal and monetary stimulus less urgent than it used to be, and that is adverse news for the precious metal.
How is XAU/USD positioned on the technical charts?
The Technical Confluences Indicator is showing that significant support awaits at $1,848, which is where the Pivot Point one-month Support 1 hits the price.
It is followed by $1,841, which is where the PP one-week S2 and the Bollinger Band 15min-Lower converge.
Looking up, immediate resistance is at $1,860, which is the confluence of the previous 1h-low, the previous monthly low, and the BB one-day Lower.
The most notable upside target is $1,877, which is a juncture of lines including the Fibonacci 23.% one-month and the Simple Moving Average 10-15m.
Key XAU/USD resistances and supports
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC 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. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
Read More: XAU/USD eyes $1,848 after covid vaccine news – Confluence Detector