Gold Price Analysis: XAU/USD needs to crack $1800 to extend post-Fed gains – Confluence Detector


Share:

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       

fxsoriginal

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.

 

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD extends recovery on Powell’s words

EUR/USD extends recovery on Powell’s words

EUR/USD has managed to stage a rebound and trades at fresh daily highs above 1.0750  after having dropped to a fresh multi-week low below 1.0670. Stocks rally and the US Dollar eases as Fed Chairman Powell said that stronger-than-expected data will see the Fed raising rates accordingly.

EUR/USD News

GBP/USD trims losses and trades above 1.2050

GBP/USD trims losses and trades above 1.2050

GBP/USD has gained traction and climbed above 1.2050, as investors assess FOMC Chairman Jerome Powell's speech. Investors cheer his optimistic words as he said he expects inflation to decline significantly this year.

GBP/USD News

Gold: Holding above $1,860, but upside still seen limited Premium

Gold: Holding above $1,860, but upside still seen limited

Spot gold saw little action throughout the first half of the day, consolidating its latest losses just above the $1,860.00 threshold. The US Dollar mainly advanced against its European rivals, as certain caution reigned ahead of a speech from US Federal Reserve (Fed) Chairman Jerome Powell, resulting in XAU/USD holding within familiar levels. 

Gold News

Google battles ChatGPT with Bard: Will this trigger rally in AI tokens?

Google battles ChatGPT with Bard: Will this trigger rally in AI tokens?

Google is getting its ChatGPT competitor ready for action, the company said that its AI service Bard would be open to trusted testers and the service is being prepared for release within the following weeks. 

Read more

Canoo Stock Forecast: Monday's GOEV plunge meets Tuesday buyers

Canoo Stock Forecast: Monday's GOEV plunge meets Tuesday buyers

Canoo (GOEV) stock is trading up more than 3% in Tuesday's premarket after a surprise share offering on Monday helped the EV small-cap to close 12.4% lower. This seemed like a major overreaction from the market, which should have seen this coming.

Read more

Forex MAJORS

Cryptocurrencies

Signatures