Gold Price Analysis: XAU/USD bulls eye $1,798 as next target – Confluence Detector
Gold has been extending its gains, benefiting from the persistent drop in US Treasury yields. Returns on ten-year US debt has remained below 1.60%, making the yieldless precious metal more attractive. Moreover, it seems that the XAU/USD bulls are lifting their heads, with fresh interest.
How is gold positioned on the technical charts?
The Technical Confluences Detector is showing that XAU/USD is struggling at the $1,779 level, which is the convergence of the Pivot Point one-week Resistance 2, the Bollinger Band 1h-Upper and the previous 4h-high.
The upside target is $1,798, which is a juncture of lines including the PP one-month R2 and the PP one-week R3.
Looking down, some support awaits at $1,770, which is where the previous daily high meets the Simple Moving Average 10-1h.
A significant cushion awaits at $1,761, which is the confluence of the PP one-week R1, the Fibonacci 23.6% one-day and the previous monthly high.
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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
