XAU/USD stays on the way to $1,960, NATO, yields eyed – Confluence Detector

• Gold prices stay above short-term key resistance, now support, despite retreating from weekly top.
• Yields underpin USD rebound but all depends upon today’s NATO summit, US data.
• Intraday bears may take entries below $1,937 but $1,930 holds the key for further weakness.

Gold (XAU/USD) bulls faced rejection around $1,949 heading into Thursday’s European session, having cheered the pullback in US Treasury yields with the biggest daily jump in two weeks the previous day.

That said, the yellow metal’s pullback could be linked to the firmer US dollar and a rebound in the T-bond yields, which in turn take clues from hawkish Fedspeak and fears of an escalation in the Ukraine-Russia war.

Also underpinning the US dollar’s safe-haven demand is the covid resurgence in China and Europe, as well as market’s anxiety ahead of the US preliminary PMIs for March and Durable Goods Orders for February.

Additionally, risk-negative headlines ahead of US President Biden’s meeting with the North Atlantic Treaty Organization (NATO) allies in Europe also challenge gold prices of late.

Read: Gold Price Forecast: XAU/USD to remain choppy ahead of critical NATO Summit on Ukraine

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold prices struggle to keep the upside break of the short-term key hurdle surrounding $1,937 comprising the Fibonacci 38.2% level on one-day and lower Bollinger Band on 15-minute play.

Also acting as the key downside filter is the $1,930 level that includes SMA50 and SMA100 in one-hour, as well as Fibonacci 38.2% level on one-week timeframe.

Should gold sellers conquer the $1,930 support, the metal becomes vulnerable to drop towards the $1,918 mark including the SMA200 on four-hour and Fibonacci 23.6% level on one-week.

On the contrary, the bullion has a smooth run until reaching the $1,960-61 zone that encompasses the previous yearly high.

Though, daily and four-hour tops surrounding $1,950 and Fibonacci 23.6% level on one-week, close to $1,956, could offer breathing space to gold buyers.

Here is how it looks on the tool

About Technical Confluences Detector

The TCD (Technical Confluences Detector) 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.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.