Gold Price Analysis: XAU/USD on its way to $1800 amid lower yields – Confluence Detector
|Gold (XAU/USD) is holding the higher ground, on track to recapture the $1800 mark, as weaker Treasury yields boost the appeal of the non-interest-bearing metal. The returns on the market tumbled alongside Wall Street indices, as risk-aversion crept in amid a global surge in the covid infections. Gold paid little heed to the corrective pullback in the US dollar from multi-week troughs.
How is the metal positioned on the technical charts?
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold faces immediate resistance at $1784, the previous week.
A sustained break through the last could prompt a quick rise towards the three-week highs of $1790
The next crucial barrier for the XAU bulls is seen at $1800, the convergence of the pivot point one-month R2 and pivot point one-week R1.
Alternatively, should the Fibonacci 38.2% one-day at $1775 support give way, a drop towards the $1770 level cannot be ruled out.
That level is the convergence of the Fibonacci 23.6% one-week and SMA100 one-hour.
Further south, the previous day low of $1764 would be on the sellers’ radars.
Here is how it looks on the tool
About Technical Confluences Detector
The TCD (Technical Confluences Detector) 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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