Will the Federal Reserve print less money? Will the new administration pump more funds into the economy? Gold traders are weighing in the rising prospects of less bond-buying from the Fed, but perhaps a generous package from President-elect Joe Biden, as Democrats are set to have full control of the Senate.
The precious metal has been stabilizing but that may not last for too long.
How is XAU/USD positioned on the technical graphs?
The Technical Confluences Indicator is showing that gold is approaching critical support at $1,857, which is the convergence of the Simple Moving Average 5-4h, the Fibonacci 38.2% one-month, the Bollinger Band 1h-Middle, the Fibonacci 23.6% one-day, and more.
Further down, the next cushion is $1,852, which is a juncture including t the SMA 200-15m, the SMA 50-1h, the Bollinger Band 1h-Lower, and more.
Weak resistance awaits at $1,861, which is the melting point of the BB 15min-Upper and the previous 1h-high.
The upside target is $1,878, which is the confluence of the of Fibonacci 38.2% one-week and the Pivot Point one-day R2.
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.