Gold eyes $1,776 support amid subdued markets

Gold price remains depressed below $1,800 amid a lack of fresh catalysts. Focus shifts to the US top-tier economic data for fresh trading impetus.

The Technical Confluences Detector shows that the gold price is teasing the previous day’s low at $1,785, eyeing a sustained move below that level to challenge the next support around $1,782.

That area is the intersection of the pivot point one-day S1 and SMA100 four-hour.

A fresh downswing towards the confluence of the Fibonacci 61.8% one-week and pivot point one-day S2 at $1,1776 will be in the offing if the bears clear the previous hurdle.

Alternatively, powerful resistance awaits at $1,792, where the Fibonacci 38.2% one-day and one-week coincide with the SMA10 four-hour.

Further up, gold bulls will try their luck once again with the SMA200 one-day at $1,796, above which the convergence of the previous day’s high and Fibonacci 23.6% one-week around $1,800 will come into play.

Buying resurgence above $1,800 will expose the upside towards the Fibonacci 38.2% one-week at $1,804.

Fundamental Overview

Gold price is trading listlessly below $1,800 in the lead up to the first top-tier US data for this holiday-shortened Christmas week. Cautious market mood, in the face of uncertainties around the Omicron covid variant, continues to keep investors away from placing any directional bets on the bright metal, leaving it exposed to downside risks.

Read: Gold 2022 Outlook: Correlation with US T-bond yields to drive yellow metal