Gold Price Analysis: XAU/USD on its way to $1800 amid lower yields – Confluence Detector
Gold (XAU/USD) is holding the higher ground, on track to recapture the $1800 mark, as weaker Treasury yields boost the appeal of the non-interest-bearing metal. The returns on the market tumbled alongside Wall Street indices, as risk-aversion crept in amid a global surge in the covid infections. Gold paid little heed to the corrective pullback in the US dollar from multi-week troughs.
How is the metal positioned on the technical charts?
Gold Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that gold faces immediate resistance at $1784, the previous week.
A sustained break through the last could prompt a quick rise towards the three-week highs of $1790
The next crucial barrier for the XAU bulls is seen at $1800, the convergence of the pivot point one-month R2 and pivot point one-week R1.
Alternatively, should the Fibonacci 38.2% one-day at $1775 support give way, a drop towards the $1770 level cannot be ruled out.
That level is the convergence of the Fibonacci 23.6% one-week and SMA100 one-hour.
Further south, the previous day low of $1764 would be on the sellers’ radars.
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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
