- Gold has been hit by the Fed's upgraded forecasts/.
- The Confluence Detector shows that XAU/USD has significant support at $1,822.
- Gold Price Forecast: Gold drops hard to daily support on surprise hawkish Fed
Rate hikes are coming – perhaps only in 2023, but that is ahead of the Federal Reserve's previous projections of hiking borrowing costs only in 2024. The world's most powerful central bank has kicked off an initial debate about tapering down its bond buys as the economy recovers quickly.
The market reacted with a jump in returns on bonds – making yieldless gold less attractive. As the dust settles from the decision, how is gold positioned on the technical charts?
The Technical Confluences Detector is showing that XAU/USD has some support at $1830, which is where the 50-day Simple Moving Average and the Pivot Point one-week Support 3 converge.
A more significant cushion awaits only at $1,822, which is where the Fibonacci 61.8% one month hits the price.
Looking up, resistance awaits at $1,850. Apart from being a round number, it is also the confluence of the PP one-day S1 and the PP one-week S2.
Further above, another critical barrier is at $1,857, which is a juncture including the SMA 50-15m and the Fibonacci 38.2% one month.
XAU/USD resistance and support levels
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.
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.