Gold Price Analysis: XAU/USD bulls return ahead of a big week, levels to watch – Confluence Detector


Gold (XAU/USD) broke the consolidative mode to the upside, starting out a big week on the front foot. Fresh Iran-US geopolitical concerns outweighed the vaccine hopes and lifted the yellow metal.  

Politico reported that Iran is reportedly plotting to kill a US ambassador, response to the killing of Qassim Soleimani. Meanwhile, AstraZeneca coronavirus vaccine clinical trials will resume in the UK after a week’s pause due to safety concerns.

Gold bulls fight back control ahead of a big week, with the FOMC decision to steal the show. How is gold positioned ahead of the key event risks this week?

Gold: Key resistances and supports

The Technical Confluence tool shows that gold has recaptured the critical barrier at $1945, which is the convergence of the Fibonacci 38.2% one-day, one-week and one-month.

Amid a lack of healthy resistance levels, it appears to be a smooth ride higher for the bulls.

The next soft cap is aligned at $1951.50, the Fibonacci 23.6% one-week. Further north, the pivot point one-day R2 at $1961 could be tested en route the previous week high at $1966.50.

The tough hurdle at $1969 will then come into play. That level is the pivot point one-day R3.

On the flip side, should the bulls surrender the aforesaid critical resistance now support at $1945, sellers could call for a test of the next significant cushion at $1938.50 (SMA50 four-hour).

The Fibonacci 61.8% one-week support of $1930 will be put to test if the bears take over.

$1927 will be the last resort for the bulls, which is the confluence of pivot point one-day R2 and Bollinger Band four-hour Lower.

Here is how it looks on the tool

fxsoriginal

About the 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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Upside stalls below 1.1700 as US dollar attempts a comeback

EUR/USD is consolidating the recent corrective advance towards 1.1700, as the US dollar attempts a comeback across the board, despite the risk-on market mood. Eurozone/ US Consumer Confidence data, Fedspeak in focus ahead of the first US Presidential election debate.

EUR/USD News

GBP/USD eyes 1.2900, Brexit brinkmanship, BOE’s Bailey in the spotlight

GBP/USD keeps buyers hopeful, despite the US dollar’s recent recoveries while holding gains above 1.2850. The cable extends gains, mainly driven by the Brexit-positive headlines but stays challenged ahead of the crucial departure talks in Brussels.

GBP/USD News

Gold looks north, two key levels to watch out

Gold started out the US NFP week on a solid footing, rallying nearly $20 on Monday. The metal bounced-off the SMA100 one-day support for the third straight day, courtesy of the broad retreat in the USD from two-month peaks.

Gold News

US CB Consumer Confidence Preview:  Neither happy nor sad

American consumer attitudes have recovered from their April pandemic low but they remain stalled far below their levels of last year. The Conference Board (CB) Consumer Confidence Index is predicted to rise to 89.2 in September.

Read more

WTI slips below $40.50 amid US dollar recovery, API data eyed

WTI refreshed the intraday low after reversing from $40.79. US dollar regains upside momentum amid hopes of further stimulus. Challenges to the US-China trade deal add downside pressure on oil prices. API data, USD moves become the key amid a light calendar.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures