Gold Price Analysis: XAU/USD eyes $1,972 as Georgia's elections are in focus – Confluence Detector

Yohay Elam FXStreet

Will Democrats enjoy a dual victory in Georgia? That is the question for gold traders. If President-elect Joe Biden's party gains effective control of the Senate, he could push for an ambitious stimulus deal that would benefit the precious metal.

The latest opinion polls show a minor lead for Democrats, but anything can happen. How is XAU/USD positioned on the charts?

The Technical Confluences Indicator is showing that gold is still battling the $1,947 level, which is the convergence of the Pivot Point one-month Resistance 1 and the Bollinger Band 1h-Upper.

Looking up, some resistance awaits at $1,959, which is the meeting point of the PP one-day R1 and the BB 4h-Upper.

Further above, the upside target is $1,972, which is where the Pivot Point one-day Resistance 2 hits the price.

Strong support awaits at $1,941, which is a dense cluster of lines including the Simple Moving Average 50-15m, the SMA 10-1h, the BB 1h-Middle, the PP one-week R3 and more.

Further down, another line worth watching is $1,930, which is the confluence of the Fibonacci 38.2% one-day and the SMA 10-4h.

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.

Learn more about Technical Confluence

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.

AUD/USD trades near May 14 highs, above 0.7200 ahead of China's trade data

AUD/USD sits above 0.7200 during the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie ahead of China's trade balance data.

USD/JPY sinks to mid-153.00s, February 18 lows as BoJ rate hike bets boost JPY

USD/JPY drops to its lowest level since February 18, near mid-153.00s during the Asian session on Tuesday, as Japan's upbeat wage growth data cements bets of a BoJ rate hike next week and continues to boost the Japanese Yen. Meanwhile, US Dollar selling remains unabated despite hawkish Fed expectations and rising geopolitical tensions, lending additional support to the currency pair.

Gold holds above $4,400 as USD weakness counters Fed hike bets

Gold trades with a positive bias above $4,400 during the Asian session on Tuesday and, for now, seems to have snapped a two-day losing streak as a rallying Japanese Yen keeps the US Dollar depressed. However, hawkish Fed bets, along with rising US-Iran tensions, could support the USD and cap the non-yielding bullion as traders await US inflation figures later this week.

Ethereum: Retail distributions outweigh whale and ETF buying

Ethereum (ETH) continues to consolidate near $2,500 on Monday as distribution from retail wallets outweighed whale optimism. Retail investors or wallets holding 1K-10K ETH offloaded 214K ETH last week, extending their distribution pattern to a second consecutive week, according to CryptoQuant data.

Strong US jobs, Middle East tensions and key inflation data ahead

Good morning all, hope you enjoyed your weekend. Markets are starting the week after Friday’s stronger-than-expected US jobs report, which increased expectations that the Fed could raise rates at its September meeting. However, US markets are closed today for the Labor Day holiday, so liquidity should be lower and we may see slower price action.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.