Gold price returns to the red on Thursday amid sell-on-rallies trading.
US Treasury yields trade firmer above 1.50%, lifting the dollar’s demand.
Gold sellers eye $1,750 as Fed stays on tightening path.
Gold price is correcting from weekly tops, as global stocks and Treasury yields rebound on easing Omicron fears. Further, hopes that the Fed will likely accelerate the reduction in bond-buying next week add to the pullback in gold price. However, expectations of hot US inflation and rising Chinese Consumer Price Index (CPI) could likely limit the decline in gold price. Markets also remain cautious ahead of Thursday’s Treasury note auction and incoming Omicron updates worldwide.
Key levels to watch
The Technical Confluences Detector shows that the gold price is heading towards powerful support at $1,780, where the previous day’s low, pivot point one-day S1 and Fibonacci 38.2% one-week converge.
A sustained move below the latter could trigger a drop towards $1,773-$1,772, the intersection of the Fibonacci 23.6% one-week, pivot point one-day S2 and the Fibonacci 161.8% one-day.
The further downside could challenge nothe bullish commitments at the pivot point one-day S3 at $1,766, below which floors will open up towards the previous week’s low of $1,762.