Gold price is consolidating its retreat from two-month highs of $1834, as the bulls continue to remain hopeful, despite the impressive US dollar rebound and the risk-on market mood. The change in expectations towards an extended period of monetary policy support likely from the Fed and China combined with looming covid concerns is keeping the buoyant tone intact around gold price. Meanwhile, investors are taking profits off the table after Friday’s $20 rally and ahead of this week’s ECB monetary policy meeting.
The Technical Confluences Detector shows that gold price is testing the powerful defense line at $1822, as it extends its pullback.
That level is the confluence of the SMA10 four-hour and Fibonacci 38.2% one-week.