Gold Price Analysis: Recapturing $1,548 critical to recovery after Trump declared an emergency


Gold prices have suffered a meltdown late in the week, as high volatility in markets triggered a rush to the US dollar, depleting demand out of the precious metal. After XAU/USD closed the week around $1,530, up from the lows, after President Donald Trump declared an emergency over the coronavirus crisis. What are the levels to watch?

The Technical Confluences Indicator is showing that the most significant line of resistance is $1,548, which is the convergence of the previous monthly low and the Bollinger Band one-day Lower. 

Beforehand, XAU/USD faces resistance at around $1,533, which is the previous daily high, followed by $1,535, where the 100-day Simple Moving Average meets the Bollinger Band 15min-Upper. 

Next, $1,540 is where the Fibonacci 38.2% one-day hits the chart. 

Looking down, some support awaits at $1,527, which is where the Fibonacci 23.6% one-day and the Simple Moving Average 5-15m meet. 

Critical support awaits at $1,521, where the Pivot Point one-month Support 1, the SMA 5-1h, the SMA 10-15m, and the BB 15min-Middle converge. 

Here is how it looks on the tool:

Gold prices technical confluence levels March 14 2020

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.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

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.

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