Gold price is trading back and forth in a narrow trading range, recovering a part of Tuesday’s decline. Despite Fed Chair Jerome Powell’s dovish take on the monetary policy, the gold price is unable to find an impetus to extend the rebound. An uptick in the US Treasury yields appears to be capping the recovery gains in gold, as the bull-bear tug-of-war extends. The return of the risk-off sentiment coupled with the US dollar’s latest leg down cushions gold’s downside. Investors reassess last week’s hawkish Fed surprise, as Powell downplays inflation concerns ahead of Friday’s all-important PCE inflation release. The Technical Confluences Detector shows that gold price is eyeing a sustained move below p0owerful support at $1779.

Sellers will then aim for the confluence of the previous low on four-hour at $1776. The next relevant support awaits around the $1770 region, the meeting point of the previous day’s low and pivot point one-day S1. Gold bears need to crack the previous month’s low of $1766, in order to unleash additional downside. Alternatively, gold bulls must clear a dense cluster of healthy resistance levels stacked up around $1784. Fierce resistance at $1790 is likely to challenge the bullish commitments. The last critical barrier for the bulls is seen at the SMA100 one-day at $1794.