The Fed once again came to the rescue of the bulls, lifting gold price from around the key support around $1792 to take on the upside beyond the $1800 mark. So far this Thursday, gold price is extending the post-Fed rally towards the critical SMA200 one-day at $1821, as Chair Jerome Powell expressed no hurry to embark upon the tapering journey. Powell also dismissed higher inflation as transitory. The dovish Fed outcome smashed the US dollar alongside the Treasury yields, reviving gold buyers.
Gold Price: Key levels to watch
The Technical Confluences Detector shows that gold has recaptured critical resistance at $1815, which is the convergence of the Fibonacci 38.2% one-month, pivot point one-day R1 and Bollinger Band one-hour Upper.
A firm break above the latter has opened gates towards $18211, the intersection of the SMA200 one-day and pivot point one-week R1.
If the buyers seize control above that barrier, then a test of the previous week’s high of $1825 could be in the offing.