Gold Price Analysis: XAU/USD path of least resistance is up after whipsaw – Confluence Detector


Inflation fears are rising – as seen in both the Consumer Price Index figures and the University of Michigan's Consumer Sentiment data. Is gold still a hedge against rising prices? That remains debatable, but the increase in the precious metal's value is clear. It is more related to the Federal Reserve's insistence that any such move is transitory. 

Where next for gold price from here? 

The Technical Confluences Detector is showing that XAU/USD has some support at $1,829, which is the convergence of the Simple Moving Average 5-4h, the previous daily high, the Bollinger Band one-hour Middle, the 5-day SMA and more. 

The gold price has an even more significant cushion at $1,814, which is the meeting point of the Pivot Point one-day Support 1 and the Fibonacci 38.2% one week. 

Looking up, some resistance awaits at $1,841, which is the confluence of the BB one-day Upper, the PP one-day Resistance 2 and more. 

Another minor cap is at $1,850, which is where the PP one-month R2 hits the gold price. 

All in all, XAU/USD has strong support and weak resistance, pointing to further gains. 

XAU/USD resistance and support levels

Confluence Detector

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.

Learn more about Technical Confluence

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: ECB’s Lagarde may add to EUR weakness

The American dollar kept rising, heading into the weekly close, with EUR/USD bottoming on Friday at 1.1846 and settling at around 1.1860. On Monday, the focus will be on ECB President Christine Lagarde. EUR/USD maintains its bearish stance despite extreme oversold conditions.

EUR/USD News

GBP/USD: Delta variant hurting the pound

The GBP/USD pair traded as low as 1.3791, its lowest since mid-April, ending the week a couple of pips above such a level. The Bank of England is having a monetary policy meeting this week. GBP/USD extremely oversold but bearish in the near-term.

GBP/USD News

GBP/USD: Delta variant hurting the pound

The GBP/USD pair traded as low as 1.3791, its lowest since mid-April, ending the week a couple of pips above such a level. The Bank of England is having a monetary policy meeting this week. GBP/USD extremely oversold but bearish in the near-term.

GBP/USD News

Ripple fears of a major decline are unwarranted

XRP price remains locked in a range between the psychologically important $1.00 and the neckline of a multi-year inverse head-and-shoulders pattern at $0.76. However, a lack of technical clues leaves frothy forecasts on the sideline until directional confirmation can be gleaned from the charts.

Read more

Where next for markets after the Fed shocker

The Fed surprised markets with an abrupt hawkish shift that has triggered substantial volatility in currency markets. Valeria Bednarik and Yohay Elam explain the surprise, discuss technical level, the next moves in FX and beyond.

Read more

Forex MAJORS

Cryptocurrencies

Signatures