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Gold ($1700/oz) is heading to some important technical levels on the weekly chart

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(Kitco News) - Gold has fallen to reach the $1700/oz level this week but right now the yellow metal is heading to some important support zones. There has been a lot of general weakness as the U.S. dollar has increased with strength and fixed income yields offer a healthy alternative.

Looking at the weekly chart below, the price is heading to the consolidation low. This support has been stubbornly tested seven times on the chart alone. There is also a grey upward sloping trendline which is in very close proximity to the green support area. When these kinds of levels confluence it can be a strong signal.

If the support does break, the next zone is pretty far away at the orange shaded area near $1564.4/oz. Although there are multiple psychological support areas along the way. The precious metal is in a strong downtrend, this could be cemented by the break of the next support which could take the price to levels not seen since April 2020.

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