Inflation is cooling off – but the US dollar refuses to follow suit. While the prospects of a delay to the Federal Reserve's tapering scheme is adverse for the dollar and positive for gold, the greenback is benefiting from concerns about global growth and the precious metal is struggling.
The Technical Confluences Detector is showing that XAU/USD faces fierce resistance at $1,798, which is a dense cluster including the Fibonacci 38.2% one day, the Bollinger Band 1h-Lower, the Simple Moving Average 100-4h and more.
That level is backed up by another significant cap at $1,801, which is the convergence of the Fibonacci 38.2% one-week, the BB 15min-Middle, and the BB one-day Middle.
