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.

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