Gold Price Analysis: XAU/USD has significant support only at $1,712 – Confluence Detector
|Gold is suffering a meltdown – alongside stocks – as US Treasury yields are surging on elevated growth and inflation forecasts. The precious metal has no yield and investors seem more attracted to Bitcoin these days. Where will it stop?
In the meantime, here is how XAU/USD is positioned on the charts.
The Technical Confluences Detector is showing that gold has some support at $1,725, which is the convergence of the Pivot Point one-week Support 2 and the previous 15min-Low.
A more considerable cushion is at $1,712, which is where the PP one-month Support 2 hits the price.
Even lower, bears may target $1,687, which is where traders find the PP one-week S3.
Looking up, some resistance awaits at $1,741, which is the confluence of the PP one-day S2 and the Simple Moving Average 5-15m.
A more significant hurdle awaits at $1,753, which is the meeting point for the PP one-week S1 and the PP one-day S3.
Further above, $1,760 is where the SMA 5-1h and the Bollinger Band 4h-Lower converge.
XAU/USD resistance and support levels
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
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