Gold Price Analysis: XAU/USD needs to break $1,938 to unleash further gains – Confluence Detector

Yohay Elam FXStreet

Gold has been moving higher in the hope the Congress approves a multi-trillion fiscal stimulus deal. President Donald Trump is reportedly eager to strike an accord ahead of the elections, while his fellow Republicans seem reluctant to go with him, especially given his standing in the polls.

Will Trump get his way? The precious metal has been rising amid this optimism. How is it positioned on the charts?

The Technical Confluences Indicator is showing that gold is battling mid-sized resistance at around $1,927, which is the convergence of the Pivot Point one-week Resistance1 and the Simple Moving Average 5-15m.

A critical cap awaits at $1,939, which is where the Fibonacci 61.8% one-week and the 50-day SMA hit the price. Topping that level would unleash further upside.

Support awaits at $1,918, which is a juncture including the previous weekly high and the Bollinger Band 4h-Upper.

Further down, $1,909 is another cushion, being the meeting point of the BB 1h-Middle and the BB-one-day Middle.

Next, $1,904 is where the Fibonacci 38.2% one-month and the PP one-day R1 converge.

Key XAU/USD resistances and supports

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.

GBP/USD bounces off one-week low amid Iran diplomacy hopes, ahead of UK CPI

The GBP/USD pair edges higher during the Asian session, snapping a four-day losing streak to the 1.3360 area, or a one-week low, touched the previous day. Spot prices, however, lack follow-through buying and trade below the 1.3400 mark, warranting caution before confirming that the recent pullback from an over two-month high has run its course.

EUR/USD holds gains above 1.1400 on hawkish ECB expectations despite US-Iran tensions

The EUR/USD pair trades with mild gains around 1.1405 during the early Asian session on Wednesday. A hawkish tone from the European Central Bank provides some support to the Euro against the US Dollar. Traders await the upcoming ECB interest rate decision on Thursday.

Gold: Strong recovery might face roadblock as oil price extends gains

Gold price extends its winning streak for the third trading day on Wednesday, trading 1.5% higher to near $4,140 during the Asian session. The precious metal recovered strongly in the past few trading days from its three-week low of $3,959.80 as traders scaled back Federal Reserve’s interest rate hike expectations for the monetary policy meeting next week.

Bitcoin holds firm as ONDO and GRAM lead rally

The broader cryptocurrency market is witnessing an easing of bearish momentum, with Bitcoin holding above $66,000 on Wednesday. Altcoins including Ondo and Gram, formerly known as Toncoin, are leading gains over the last 24 hours, driven by new features. Bitcoin holds above $66,000 on Wednesday, following a 2% surge the previous day.

UK CPI set to show receding inflation in June as GBP/USD fails at May highs

The UK Office for National Statistics will release the June Consumer Price Index figures on Wednesday at 06:00 GMT, a print that will matter for markets. Consensus expectations point to inflation pressures still above the Bank of England’s target, although losing further momentum.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.