- XAU/USD has hit $1,800, the highest in a month.
- The Confluence Detector is showing is that gold's next big upside target is $1,820.
- Gold is not a dream risk-off hedge, nor is Bitcoin [Video]
Falling yields have always been good for gold – and this time, the precious metal seems to have found its feet regardless of the Treausiries. Tuesday's slide in returns on 10-year bonds sent XAU/USD shooting higher, and it stayed there also after yields crept up once again.
One of the explanations for the recent rise is the hint from the Fed that the pace of bond-buying will be reduced only gradually – 15 billion fewer dollars worth of buys every month rather than $20 billion.
How is XAU/USD technically positioned?
The Technical Confluences Detector is showing that gold faces some resistance at $1,802, which is the convergence of the 100-day Simple Moving Average, the Bollinger Band 15min-Upper, and the previous 4h-high.
The more significant line is $1,820, which is where the Pivot Point one-month Resistance 1 and the PP one-day R2 meet up.
Immediate support awaits at $1,797, which is the confluence of the 200-day SMA and the PP one-week Resistance 2.
The next line to watch is $1,791, which is a juncture of indicators including the Fibonacci 61.8% one-month and the SMA 100-15m.
Lower, strong support awaits at $1,777, which is where the PP one-week, the 50-day SMA, and the SMA 50-1h all converge.
XAU/USD resistance and support levels
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.
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.