Gold Price Analysis: XAU/USD recaptures critical level, eyes $1,804 – Confluence Detector
|The sell-off in bonds has resumed and money is flowing back into stocks and also gold – as the precious metal maintains its new status as a risk asset rather than a safe-haven. Will this recovery continue? A lot depends on President Joe Biden's stimulus
In the meantime, here is how XAU/USD is positioned on the charts.
The Technical Confluences Indicator is showing that gold has overcome critical support at around $1,776, which is the convergence of the Simple Moving Average 10-4h, the Fibonacci 61.8% one-day and the Pivot Point one-month Support 1.
Further down, the next cushion awaits at $1,756, which is where the Fibonacci 161.8% one-day, the Bollinger Band 4h-Lower, and the Pivot Point one-day Support 2 all meet up.
Looking up, some resistance awaits at $1,804, which is the confluence of the PP one-week S1 and then the previous monthly low.
Beyond the horizon, the upside target is $1.826, which is a juncture including the Fibonacci 61.8% one-week and the SMA 100-4h.
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.
Learn more about Technical Confluence
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.