Gold Price Analysis: XAU/USD eyes critical $1862 resistance ahead of Biden’s inauguration – Confluence Detector

Dhwani Mehta FXStreet

Gold (XAU/USD) is advancing above the 200-day SMA, as the US inflation expectations continue to rise, in anticipation of a massive stimulus package under the incoming Biden administration. Stimulus expectations boost gold’s appeal as an inflation-hedge while downing the safe-haven US dollar.

Treasury Secretary nominee Janet Yellen’s backed President-elect Biden’s view for higher fiscal spending, noting that its benefits outweigh the expenses of a higher debt burden. Biden’s inauguration speech is eagerly awaited for fresh hints on the stimulus plan.

How is gold positioned on the technical charts?

Gold Price Chart: Key resistances and supports

The Technical Confluences Indicator shows that gold has some additional room to the upside, with the immediate resistance seen at $1858. That level is the confluence of the SMA10 one-day and Fibonacci 38.2% one-month.

After crossing a dense cluster of mino9r resistance levels, the XAU bulls may run through strong offers at $1860/62, which is the SMA50 one-day.

The previous week high at $1864 is the level to beat for the gold buyers.

On the flip side, acceptance under the critical support around $1847/46 is needed to invalidate the recovery momentum. The Fibonacci 61.8% one-week intersects with the SMA200 one-day and the previous day high at that point.

The next relevant support awaits at $1840, which is the convergence of the SMA10 four-hour, SMA5 one-day and the previous low four-hour.

The sellers will then target the Fibonacci 38.2% one-week at $1835, below which the $1829 (Fibonacci 23.6% one-week) support will challenge the bears’ commitment.

Here is how it looks on the tool

About 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.

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.

AUD/USD sits near a one-month top, above 0.7000 amid fresh USD selling

AUD/USD holds above 0.7000 through the Asian session, trading near a one-month high touched earlier this Monday amid renewed US Dollar selling. US bond yields decline further amid a modest pullback in crude oil prices, capping the USD recovery from a three-week low. Moreover, bets for a November RBA rate hike support the Aussie, though upside seems capped ahead of the crucial two-day FOMC meeting, starting Tuesday.

USD/JPY struggles below 157.00 on weak USD; holds above one-month low ahead of Fed, BoJ meetings

USD/JPY attracts fresh sellers during the Asian session on Monday, stalling its recovery from the lowest level since September 18, touched Friday as a further decline in US bond yields weighs on the US Dollar. Meanwhile, the Japanese Yen benefits from a more hawkish BoJ, further weighing on the currency pair. The downside, however, seems limited as traders keenly await Fed and BoJ policy meetings later this week.

Gold consolidates near $4,000 as recovery remains fragile ahead of Fed decision

Gold (XAU/USD) consolidates modest gains on Monday after last week’s sharp decline pushed the metal to $3,975, its lowest level since August. A pullback in Oil prices offers support as traders react to diplomatic efforts to ease tensions in the Middle East.

Cardano's derivatives and on-chain data confirm bears in control

Cardano extends losses, trading below $0.202 after three consecutive weeks of more than 20% declines since early October. Selling pressure continues to build as weakening derivatives metrics, bearish on-chain signals and a deteriorating technical outlook point to further downside risks. Derivatives data shows a bearish bias for Cardano.

Flight to safety meets a high earnings bar as central bank week begins

Treasuries rallied again, equities are struggling, and central banks and earnings are on the horizon. Last week, US Treasuries rallied for a second consecutive week. This pushed 10s and 30s to 5% and 5.33%, respectively, flattening the curve even as Brent crude rallied about 7% to within striking distance of March peaks at US$119.50, and tech stocks posted a second straight week of losses.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.