Gold Price Analysis: XAU/USD keeps $1900 in sight while above key $1871 cap – Confluence Detector

Gold price retested three-month highs of $1890, although settled the week near $1880 levels, registering the third straight week of gains. Gold price remained undeterred by the FOMC minutes, which offered subtlest hints on tapering, as growing inflation risks continued to support the traditional inflation hedge. Further, persistent weakness in the US dollar and the Treasury yields, amid expectations of a faster vaccine-driven global economic recovery, also benefited gold. Additionally, the brutal crypto market crash helped keep the sentiment buoyed around the safe-haven gold.

Heading into a fresh week, the inflation narrative will continue to have a significant impact on gold trades. Meanwhile, Fedspeak, US Preliminary GDP and Consumer Durable Goods data could offer some fresh trading insights.  

Read: Gold is stable and strong in the face of crypto goofiness

Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold price remains stuck between two key barriers on either side, following the weekly close at $1881.

To the downside, immediate support is seen at $1879, the confluence of the Fibonacci 61.8% one-day and Fibonacci 23.6% one-week and SMA5 four-hour.

A powerful cushion at $1871 could likely limit any retracement from higher levels. That support is the convergence of the previous day low, pivot point one-day S1 and Fibonacci 38.2% one-week.

Acceptance below the latter could trigger a drop towards $1858, where the Fibonacci 161.8% one-day coincides with the Fibonacci 61.8% one-week.

Alternatively, if the intersection of the previous high four-hour and Fibonacci 38.2% one-day at $1883 is taken out, gold price could target the next upside barrier at $1890.

At that point, the previous week high, previous day high and pivot point one-day R1 meet.

Further north, fierce resistance at $1900 is likely to challenge the bullish traders. That is the convergence of the pivot point one-month R3, pivot point one-week R1 and pivot point one-day R2.

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.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

Share: Feed news

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.

Recommended content

Recommended content

Editors’ Picks

EUR/USD keeps its range above 1.0850 amid risk-off mood

EUR/USD keeps its range above 1.0850 amid risk-off mood

EUR/USD is oscillating in a tight range above 1.0850 in the European session on Tuesday. The pair stays cautious due to risk-off sentiment and a modest US Dollar uptick, as investors weigh the ECB and Fed rate cut expectations. The focus now remains on speeches from Fed officials. 


GBP/USD holds gains above 1.2700, awaits fresh catalysts

GBP/USD holds gains above 1.2700, awaits fresh catalysts

GBP/USD holds small gains above 1.2700 in European trading on Tuesday. Investors await fresh catalysts, with several Federal Reserve speakers and BoE Governor Andrew set to speak. Tuesday's Fedspeak weighed on rate cut expectations and fuelled a fresh US Dollar advance. 


Gold price loses its recovery momentum amid renewed US Dollar demand

Gold price loses its recovery momentum amid renewed US Dollar demand

Gold price (XAU/USD) loses traction on Tuesday after reaching a record high earlier. The lack of fresh catalysts in a quiet session in terms of top-tier economic data might limit the precious metal’s upside.

Gold News

Shiba Inu price flashes buy signal, 25% rally likely Premium

Shiba Inu price flashes buy signal, 25% rally likely

Shiba Inu price has flipped bullish to the tune of the crypto market and breached key hurdles, showing signs of a potential rally. Investors looking to accumulate SHIB have a good opportunity to do so before the meme coin shoots up.

Read more

Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out Premium

Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out

Sell in May and go away? That market adage seems outdated in the face of new highs for stocks and Gold. Optimism depends on the easing from central banks – and some clues are due this week.

Read more