Gold (XAU/USD) is consolidating near four-day highs but remains below $1800 so far this Thursday. Fed Chair Jerome Powell’s dismissal of tapering bets gave the much-needed boost to the XAU bulls. Meanwhile, US President Joe Biden pushed for his $1.8 trillion stimulus package, which exerted additional upside pressure on gold.
The US Treasury yields fell across the curve amid expectations of prolonged policy support from both the government and the central bank, supporting the non-yielding gold. Let’s how gold’s technical graphs are aligned ahead of key US economic data.
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold’s path of least resistance appears to the upside, as a dense cluster of healthy support levels is lined up around $1780-$1775.
The zone is the confluence of the SMA50 four-hour, Fibonacci 61.8% one-week, Fibonacci 23.6% one-day and SMA10 one-day.
Ahead of this cushion, the XAU bears could test the immediate support at $1783, the Fibonacci 38.2% one-week.
Further south, the Fibonacci 61.8% one-day at $1770 could be the next target for the sellers.
However, if the bullish momentum resumes, the XAU bulls could likely take on the $1791 barrier, which is the convergence of the Fibonacci 23.6% one-week and the pivot point one-day R1.
The next stoppage is seen at the intersection of the pivot point one-day R2 and pivot point one-week R1 at $1796.
The next key level for gold traders is the $1800 mark that needs to be scaled on a sustained basis to extend the Fed-led upside.
Around that point, the previous week high coincides with the pivot one-month 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. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
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
Editors’ Picks
AUD/USD going nowhere in a hurry; remains stuck in a multi-week-old range
AUD/USD extends the range play on Friday and remains below the 200-day SMA pivotal resistance as the RBA's dovish outlook and renewed US-China trade tensions undermine the Aussie amid a modest USD recovery. However, Fed rate cut bets cap the upside for the USD, which, along with a positive risk tone, acts as a tailwind for the currency pair.
USD/JPY ticks lower as Japan’s strong inflation print lifts BoJ rate hike bets
USD/JPY attracts fresh sellers during the Asian session on Friday following the release of hot consumer inflation figures from Japan, which keeps the door open for more interest rate hikes by the BoJ. Moreover, trade uncertainties and geopolitical risks underpin the JPY and weigh on the currency pair amid the lack of follow-through USD buying.
Gold price consolidates around $3,300 mark, bullish potential seems intact
Gold price lacks any firm intraday direction on Friday and seesaws between tepid gains/minor losses, around the $3,300 mark during the Asian session on Friday. The XAU/USD bears, however, seem reluctant to place aggressive bets and positioning for an extension of the previous day's pullback from over a two-week high on the back of US fiscal concerns.
TRUMP meme coin sees rejection at $16, legislators target President Trump's crypto ties ahead of gala with holders
Official Trump (TRUMP) meme coin saw a rejection at $16 on Thursday ahead of a crypto dinner between token holders and President Trump. The dinner comes amid backlash from lawmakers who introduced the Stop TRUMP in Crypto Act to halt the President's involvement in digital assets.
FOMO vs fundamentals: Retail buys the dip, institutional investors stay cautious
Retail optimism is rising, but institutions are still treading carefully amid lingering macro and earnings risks. Policy and fiscal uncertainty remain elevated, with trade tensions, U.S. debt concerns, and a cautious Fed dominating the backdrop.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.