- Gold picks up the bids, up for third day.
- US dollar weakness attracts bulls amid risk-on mood.
Gold refreshes intraday high of $1,814.93, up 0.22% on a day, during Tuesday's Asian session. The quote has been rising for the third consecutive day amid the US dollar's 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 to a bounce that entailed a run of more than $200 in a little over a month as buyers backed the bid coming into 2021.
Since the beginning of the year, gold has been declining. Last Thursday gold reached a fresh seven-month-low, temporarily testing below this confluent zone of support. However, bulls pushed prices above the 1,800 psychological level.
The bulls could extend control towards $1,820, above which they may face the resistance level at $1,825.
If gold resumes the downward movement, a test of the November lows at $1,766 would be back on the table. Also, the seven-month lows at $1,761 could be at risk.