Gold Price Analysis: XAU/USD eyes $1717 key support ahead of Powell – Confluence Detector

Dhwani Mehta FXStreet

Gold (XAU/USD) is under pressure below $1750, courtesy of the resurgent haven demand for the US dollar across the board. The Turkish central bank upheaval over the weekend and overheating fears continue to boost the greenback’s safe-haven appeal. Also, the Fed’s decision to let a capital break on big banks expire on Friday weighs negatively on gold.

Next of note for gold remains a slew of Fedspeak due later on Monday, with the Fed Chair Jerome Powell’s speech eagerly awaited.

How is gold positioned on the charts?

Gold Price Chart: Key resistance and support levels

The Technical Confluences Detector shows that gold is challenging the bears’ commitments at the fierce support of $1737, which is the intersection of the previous low four-hour, SMA10 four-hour and SMA5 one-day.

A breach of the last would expose the Fibonacci 61.8% one-week at $1733.

The next relevant cushion for the XAU bulls is seen at $1725, where the pivot point one-week S1 intersect with the Bollinger Band four-hour lower.

The confluence of the previous month low and Fibonacci 161.8% one-day at $1717 offers strong support, which will be a tough nut to crack for the XAU sellers.

On the flip side, a dense cluster of resistance levels is aligned around $1743, the meeting point of the SMA5 four-hour, Fibonacci 38.2% one-week and Fibonacci 23.6% one-day.

The next upside target is placed at $1747, the Friday’s high and Fibonacci 23.6% one-week.

The Fibonacci 23.6% one-week at $1754 is the next relevant barrier for the buyers.

Further up, the pivot point one-week R1 at $1762 would get tested, opening doors towards the $1772 resistance. That level is the pivot point one-day R3.

Here is how it looks on the tool

About Technical Confluences Detector

The TCD (Technical Confluences Detector) 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

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD advances to three-month peak beyond 1.3600

GBP/USD extends its daily rally and trades at its highest level since mid-May above 1.3600. The US Treasury Department decision to double the sice of liquidity support buyback operations for longer-dated nominal coupon securitiez weighs heavily on the US Dollar and helps the pair push higher. Earlier in the day, the data from the UK showed that annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected.

EUR/USD surges to 11-week high above 1.1650 after US Treasury announcement

EUR/USD gathers bullish momentum and trades at its highest level since early June above 1.1650 on Wednesday. The US Dollar stays under heavy bearish pressure after the US Treasury announced that it will increase the size of liquidity support buyback operations for longer-dated nominal coupon securities. Later in the day, investors will scrutinize FOMC Minutes for fresh clues on policy outlook.

Gold climbs 2% as US Treasury buyback plan pressures long-term yields

Gold (XAU/USD) enters Wednesday’s American trading hours with decent intraday gains, as a softer US Dollar (USD) and a sharp pullback in long-term US Treasury yields help the metal recover all the previous day’s losses.

Crypto Today: Bitcoin, Ethereum, XRP defend key support as ETF inflows return

Bitcoin’s upside remains capped on Wednesday while the downside appears strongly supported above $64,000. The Crypto King’s early week rebound lost momentum near $65,000 as investors assessed the impact of geopolitical tensions in the Middle East.

Fed Minutes expected to shed light on the depth of FOMC hawkish split

The United States (US) Federal Reserve (Fed) will release the Minutes of the July Federal Open Market Committee (FOMC) meeting on Wednesday. The document should allow investors to assess the extent of the hawkish bias within the central bank after a meeting marked by three dissenting votes in favor of a rate hike.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.