Gold Price Analysis: XAU/USD bulls en-route $1,890 as US House passes stimulus – Confluence Detector

Gold prices benefit from the broad risk-on mood while rising to $1,880, up 0.40% intraday, during early Tuesday. In doing so, the yellow metal also cheers the US dollar weakness following the House passage of President Donald Trump’s $2,000 paycheck amount.

Read: S&P 500 Futures refresh record top above 3,700 on US covid aid package updates

It should, however, be noted that the bill now heads to the Senate where Republicans are likely to block the deal by citing the budget deficit. Also expected to challenge the present market optimism is the House rejection of President Trump’s veto over the defense bill.

Also likely to challenge the bulls is the lack of major data/events amid the year-end celebrations.

As a result, the current market optimism faces the uphill task ahead of the North American session.

Gold: Key levels to watch

A convergence of 38.2% Fibonacci retracement and upper band the Bollinger on the daily (1D) chart guards the commodity’s immediate upside around $1,882. However, bullish momentum and trading sentiment, coupled with the US dollar weakness, can help the gold buyers to tack the nearby hurdle.

Following that, 61.8% Fibonacci retracement of one month (1M) and Bollinger upper band on the hour (1H) play, around $1,890, becomes the key before the $1,900 threshold.

On the downside, 200-HMA and 38.2% Fibonacci retracement of one week near $1,875 becomes adjacent support to watch during the quote’s fresh pullback.

Though, gold bears are less likely to turn serious unless witnessing a break of 50-day SMA and 23.6% Fibonacci retracement of weekly performance near $1,868.

Here is how it looks on the tool


About Confluence Detector

The TCI (Technical Confluences Indicator) 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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD sellers are up and roaring as sour sentiment joins firmer yields to renew the downside during early Thursday, after a day full of surprises and positive performance. Germany’s HICP may not impress pair buyers unless US GDP disappoints.


GBP/USD turns sideways around 1.0800, focus shifts to US/UK GDP data

GBP/USD turns sideways around 1.0800, focus shifts to US/UK GDP data

GBP/USD is expected to resume its upside journey after concluding its correction to near 1.0800. To revive UK’s financial stability, the BOE announced a bond-buying program worth GBP 65 billion. Does BOE really not have the stomach to fight inflation while simultaneously keeping financial stability?


Gold sees cushion around $1,650 after a corrective move, US GDP buzz

Gold sees cushion around $1,650 after a corrective move, US GDP buzz

Gold price is experiencing a healthy correction in the Tokyo session after witnessing a bumper rally. The precious metal is expected to find significant bids around the immediate cushion of $1,650.00 as the downside bias is not backed by momentum. 

Gold News

XRP: A checklist for the next rally

XRP: A checklist for the next rally

XRP price has shown incredible buying pressure after a dip into the $0.381 to $0.433 demand zone. A recovery above $0.464 could ignite the next run-up, but ideally, a retest of $0.397 could be a good place to be a bull.

Read more

A week after Japanese yen intervention

A week after Japanese yen intervention

Last Thursday was an incredibly volatile trading session for the USD/JPY. This volatility was largely caused by the Bank of Japan's (BoJ) intervention in the currency markets to defend its depreciating currency, the Japanese Yen. Last week’s move was the first time since 1998 that the BoJ had intervened.

Read more