Gold Price Forecast: XAU/USD rebounds from $1,830 as USD Index turns subdued – Confluence Detector
|- Gold price has attempted recovery from $1,830.00 as USD Index is displaying a subdued performance.
- Weaker US Treasury yields are barricading the upside for the USD Index.
- Fed Powell has confirmed aggressive rate hikes and higher terminal rates to tame the stubborn inflation.
Gold price (XAU/USD) has delivered a break above the consolidation formed in a $2 range in the Asian session. On a broader note, the precious metal is inside the woods as $1,825-1,836 range consolidation is still intact ahead of the release of the United States Nonfarm Payrolls (NFP) data. The US Dollar Index (DXY) is facing barricades in extending its rebound move above 105.35 as weaker yields are keeping a cap on safe-haven’s appeal.
S&P500 futures have recorded significant losses in the Asian session after a nosedive Thursday as an endorsement of higher corporation taxes by US President Joe Biden has triggered a sense of pessimism among investors. Higher corporation taxes are going to dent dividends distributed to shareholders and earnings retained by the firms.
Although Federal Reserve (Fed) chair Jerome Powell has confirmed aggressive rate hikes and a higher terminal rate to tame the stubborn inflation, the release of the United States employment data will deliver more clarity.
Considering the better-than-anticipated US Automatic Data Processing (ADP) Employment figures, it is highly expected that the official employment data could display an upbeat number. As per the consensus, the Unemployment Rate is seen unchanged at 3.4%.
Also read: Gold Price Forecast: XAU/USD slides towards $1,810 on sour sentiment, US NFP in focus
Gold Price: Key levels to watch
The Technical Confluence Detector shows that the Gold price is gathering strength to reclaim the immediate resistance aligned at $1,832.70, where the previous day’s high and three-day high coincide.
A decisive break above $1,832.70 would expose the asset to an enormous high of $1,863.00, where monthly 38.2% Fibonacci retracement and daily upper Bollinger Band coincide.
An alternate case of a breakdown below $1,821.28, where daily 61.8% Fibo retracement and Pivot Point Weekly Support coincide will drag the Gold price dramatically to $1,806.00 where the previous month and previous low equate.
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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. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.
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