- Gold picks up the bids, up for third straight day.
- US dollar weakness favord bulls amid risk-on mood.Gold refreshes intraday high to $1,814.93, up 0.22% on a day, during Tuesday's Asian session. In doing so, the quote rises for the third consecutive day amid the US dollar weakness and upbeat market sentiment. However, the cautious mood ahead of Federal Reserve Chairman Jerome Powell's bi-annual testimony tests the bulls.
Gold prices are bid today as the yellow metal extends a bounce from a key area of support on the chart. The zone from 1763-1766 was looked at a couple of weeks ago. This area contains two different Fibonacci levels and when it came into play in late-November, it helped to bring buyers back into the mix, and that led into a bounce that entailed a run of more than $200 in a little over a month as buyers backed the bid coming into 2021.
But New Year price action hasn't been all that friendly to Gold bulls, as a downdraft developed in January that's lasted through the bulk of February. Last Thursday saw prices develop a fresh seven-month-low, temporarily testing below this confluent zone of support; and bulls have since come back into the matter to push prices back above the 1800 psychological level.
The bulls could extend control towards the $1820 round number, above which the resistance at $1825 could be challenged
Should the downside pressure regain momentum, a test of the November lows at $1766 would be back on the table. Also, the seven-month lows at $1761 could be at risk.