As US President Joe Biden’s stimulus package heads towards House vote, Gold’s (XAU/USD) comeback from multi-month lows gathers momentum into the third straight session this Tuesday. Gold is building on Monday’s 1.5% surge, as rising worldwide inflation expectations bode well for the inflation-hedge.
The retreat in the US Treasury yields and rising import demand from India have also helped the metal reach weekly tops. Although gold’s further upside hinges on the Fed Chair Jerome Powell’s testimonies due on Tuesday and Wednesday.
How is positioned on the charts?
Gold Price Chart: Key resistances and supports
The Technical Confluences Indicator shows that gold is eyeing $1820/22 resistance, as it extends its recovery. That level is the confluence of the SMA21 one-day, pivot point one-day R1 and pivot point one-week R1.
A sustained move above the latter could expose the previous week high of $1827. The next relevant barrier is aligned at $1840, the Fibonacci 23.6% one-month.
On the flipside, the immediate cushion is seen at $1803, the intersection of the previous month low, SMA50 four-hour and Fibonacci 61.8% one-week.
The next relevant support awaits at $1790, the confluence of the SMA20015-mins, SMA50 one-hour and pivot point one-day S1.
Further south, the convergence of the Fibonacci 23.6% one-week and pivot point one-month S1 at $1778 could likely challenge the bearish commitments.
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.
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