Gold quotes are consolidating at around 1858.00. The significant downward correction in all defensive assets, including gold, was due to several reasons.
The first factor was the relative relaxation of political tensions in the US after the US Congress officially approved the election results, according to which Joe Biden will become the next US President, taking office on January 20.
The second reason was the unexpected rise in the yield on US Treasury long-term bonds. If the three-year Treasury notes rose to 0.234% from 0.211%, which is not so noticeable, then the ten-year Treasury notes were placed at 1.164%, which is much higher than 0.951% at the previous placement.
In general, despite the downward correction, which may continue locally, the global upward trend is not over and will start again soon.
Support and resistance levels
Asset quotes showed a significant downward correction, after which a local pattern of continuation of the “flag” trend is now forming. Technical indicators continue to hold a local sell signal. The fast EMAs of the alligator indicator are below the signal line, and the histogram of the AO oscillator is trading in the negative zone.
Resistance levels: 1871.0, 1906.0.
Support levels: 1835.0, 1777.0.
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